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W.Virginia senator wants probe of Canadian Pacific plan to buy rival

Published 2016-01-26, 03:33 p/m
© Reuters. W.Virginia senator wants probe of Canadian Pacific plan to buy rival
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By Diane Bartz
WASHINGTON, Jan 26 (Reuters) - West Virginia Senator Joe
Manchin called on Tuesday for a congressional hearing to discuss
Canadian Pacific Railway 's CP.TO plan to buy Norfolk Southern (N:NSC)
NSC.N , saying it could cost people in his state their jobs.
Canadian Pacific Railway , the No. 2 Canadian railroad, made
an unsolicited $28 billion offer for the U.S. railroad Norfolk
Southern in November. Norfolk Southern has repeatedly rejected
the advances, saying the proposed terms were "grossly
inadequate" and that a deal would face substantial regulatory
risks.
Manchin, a Democrat, called on Tuesday for the Senate
Committee on Commerce, Science and Transportation to hold a
hearing on the proposed deal.
He argued that Canadian Pacific was already aggressively
slashing jobs because of pressure from investors, including
saying last week that it planned to cut nearly 1,000 jobs in
2016.
"This merger creates real and present dangers to hardworking
people of West Virginia. I'm calling for a Commerce Committee
investigation into this merger because I want to ask (Canadian
Pacific Executive Officer) Hunter Harrison what they are going
to invest in, what they are going to build, and how they are
going to help the people and the communities of our state," said
Manchin.
The deal - which is not official - has already attracted
criticism from industry groups representing freight customers,
the Transportation Communications Union/International
Association of Machinists as well as Representatives Peter
DeFazio of Oregon and Michael Capuano of Massachusetts, both
Democrats, and Democratic Senator Amy Klobuchar, ranking member
of the Senate Judiciary Committee's antitrust subcommittee.

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