CP publishes third white paper on NS merger

Canadian Pacific today released its third white paper on issues related to its proposed acquisition of Norfolk Southern Corp.

The latest paper, titled "CP-NS: A Comprehensive Approach to Regulatory Approval," details the comprehensive, merit-based process a railroad merger application would be subject to at the U.S. Surface Transportation Board, CP officials said in a press release.

"In advancing its proposal to combine CP and [NS], CP is confident that the proposal can meet this standard and its voting trust structure will be approved because a CP-NS combination will more than satisfy the STB's public interest standard by introducing features that will enhance competition through a number of shipper-friendly options," they said in the release.

A combination of the two Class Is would form a transcontinental railroad "with the scale and reach to deliver unsurpassed levels of service and safety to customers and communities while increasing competition, supporting continued economic growth and creating significant shareholder value," CP's press release stated.

CP has made three acquisition proposals to NS; all three have been rejected to date.

In response to CP's release of its third white paper, NS issued the following statement: "The fact that CP has not sought a declaratory order from the STB for its voting trust structure shows that it has no confidence that it would ever be approved. CP's white paper does nothing more than repeat CP's misleading and flatly wrong statements about the regulatory hurdles to a transaction."