UPDATE 1-CP wants U.S. DOJ to look into talks held by U.S. railroads

(Adds UP spokesman's comment)
By Nick Carey
Jan 19 (Reuters) - Canadian Pacific Railway Ltd CP.TO
urged the U.S. Department of Justice to look into statements by
U.S. railroad companies about "working closely with each other
to block" the company's proposed takeover of Norfolk Southern (N:NSC)
Corp NSC.N .
CP's proposed $28 billion offer to buy Norfolk Southern,
disclosed in mid-November, has been spurned multiple times,
setting the stage for a proxy battle.
CP said in its letter to the DOJ released on Tuesday that
the "collective communication strategy" adopted by rival
railroads was "likely illegal because it is anticompetitive."
However, Union Pacific Corp (N:UNP) UNP.N spokesman Aaron Hunt
told Reuters on Tuesday the company had "communicated with other
railroads for the purpose of petitioning the government."
"We oppose this merger and we are prepared to discuss our
views with the government," he said.
Executives from U.S. railroads including UP, CSX Corp
CSX.O and BNSF BNISF.UL , owned by Warren Buffett's Berkshire
Hathaway Inc BRKa.N , told Reuters last week that Class I
railroads had held limited discussions concerning the impact of
a merger on the industry.
The executives stressed that any discussions they have are
strictly limited by law to subjects that affect the industry.

"We're limited on what we can discuss, which is why we had
inside lawyers, outside lawyers and outside lawyer consultants,"
BNSF chairman Matt Rose told Reuters last Thursday.
"It's being done thoughtfully and it's not secretive, it's
not clandestine. We are there discussing what the potential
public policy implications of this would be."
CP reiterated in its letter that there was minimal overlap
between its and Norfolk's networks.
The company "ultimately concluded the unprecedented action
of major competitors organizing to block a new entrant from
enhancing competition to the U.S. merited the attention of the
antitrust authorities," CP said in a statement accompanying the
letter.