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

Published 2016-01-19, 10:52 a/m
© Reuters. CP wants U.S. DOJ to look into talks held by U.S. railroads
CSX
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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 .
Canadian Pacific proposed $28 billion offer to buy Norfolk
Southern, disclosed in mid-November, has been spurned multiple
times, setting the stage for a proxy battle. ID:nL1N14O171
Executives from U.S. railroads including Union Pacific Corp (N:UNP)
UNP.N , CSX Corp CSX.O and BNSF BNISF.UL , owned by Warren
Buffett's Berkshire Hathaway (N:BRKa) 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 re-iterated in its letter to the DOJ released on Tuesday
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.

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