Rep. Bill Shuster, chairman of the House Transportation and Infrastructure Committee, came out today in strong opposition of Canadian Pacific Railway’s proposed takeover of number four U.S. railroad Norfolk Southern Corp.
The chairman of the U.S. House of Representatives Committee on Transportation and Infrastructure came out today in strong opposition of Canadian Pacific Railway’s proposed takeover of number four U.S. railroad Norfolk Southern Corp.
Rep. Bill Shuster, R-Pa., said in a statement the deal is not in the best interests of the U.S. freight transportation system, railroad employees, rail shippers, and the short line railroads. Shuster joined Class I railways CSX Corp., Union Pacific Corp. and BNSF Railway, other members of Congress, rail unions, NS customers, FedEx and UPS, all of whom have said a merger would cause further consolidation in the industry that would lead to a decrease in competition and service levels.
CP since last November has made three separate unsolicited cash-and-stock offers for NS valued at around $30 billion, all three of which were rejected as “grossly inadequate” and unlikely to win regulatory approval from the U.S. Surface Transportation Board. CP has continued the highly publicized takeover attempt undeterred, however, filing a definitive proxy statement last week with the U.S. Securities and Exchange Commission (SEC).
The proxy statement relates to an NS shareholder resolution that would force the board of directors to engage in negotiations with CP regarding a potential tie-up.
NS last week set the date for its annual shareholder meeting for May 12 in a regulatory filing with the SEC that also contained a letter urging employees and shareholders to vote down the proxy statement from CP.
“Since 2014, CP has been actively pursuing a merger, first with CSX, and now three different proposals to merge with Norfolk Southern, all of which have been rejected,” said Shuster. “A strong, healthy, and well-functioning freight rail system is critical to the movement of goods in this country.
“However, CP’s pursuit of a merger over the last two years has done nothing but create uncertainty in the rail industry, and there continues to be no clear path forward for such an arrangement. I have expressed my concerns to the appropriate federal agency, and I believe it is time for all parties to move on from hypothetical merger proposals and focus on improving the transportation of goods and products to help grow the American economy.”
House T&I chairman opposes CP-NS deal
