Friday, November 11, 2011
Berkshire could be the buyer, an outcome that would give BNSF coverage of the entire western U.S. and Canada.
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BC Mary comment: I checked the calendar. It's not April 1. What gives here?
Canadian Pacific Railway marked for sale
November 10, 2011
By: Today's Trucking
The Journal of Commerce (JOC) reported last week that a private equity firm's new minority stake in the Canadian Pacific Railway (CP) has prompted suggestions could lead to a large re-organization or even a full-on sale of the railroad in a consolidation of the North American rail industry.
Peter Nesvold, a Jefferies & Co. analyst, said that the Warren Buffet-led firm Berkshire Hathaway — which bought BNSF Railway two years ago — could be a buyer.
RBC Capital Markets’ analyst Walter Spraklin said a non-railroad or a Canadian pension fund would be a more likely buyer.
Pershing Square Capital Management acquired a 12.2 percent stake in CP and said it wants to hold talks with management, reported the JOC.
Pershing's founder and manager has a reputation for targeting companies that he sees as undervalued, then leaning on management for changes that would drive up the stock.
Pershing said it would "engage in discussions with management, the board, other stockholders… and other relevant parties concerning the business, management, operations, assets, capitalization, financial condition, governance, strategy and future plans."
Nesvold said that if Pershing pushes for a "strategic tie-up," Berkshire could be the buyer, an outcome that would give BNSF coverage of the entire western U.S. and Canada. Nesvold, according to the JOC, noted that a joint venture with Kansas City Southern could create the first trans-North American railroad.
CP has been struggling this year with severe weather problems. Q3 profit fell 5.3 percent to $184 million as increasing costs surpassed a 4.3 percent increase in revenue, to $1.32 billion.
Source:
http://www.workingforest.com/canadian-pacific-marked-sale/
BC Mary comment: I checked the calendar. It's not April 1. What gives here?
Canadian Pacific Railway marked for sale
November 10, 2011
By: Today's Trucking
The Journal of Commerce (JOC) reported last week that a private equity firm's new minority stake in the Canadian Pacific Railway (CP) has prompted suggestions could lead to a large re-organization or even a full-on sale of the railroad in a consolidation of the North American rail industry.
Peter Nesvold, a Jefferies & Co. analyst, said that the Warren Buffet-led firm Berkshire Hathaway — which bought BNSF Railway two years ago — could be a buyer.
RBC Capital Markets’ analyst Walter Spraklin said a non-railroad or a Canadian pension fund would be a more likely buyer.
Pershing Square Capital Management acquired a 12.2 percent stake in CP and said it wants to hold talks with management, reported the JOC.
Pershing's founder and manager has a reputation for targeting companies that he sees as undervalued, then leaning on management for changes that would drive up the stock.
Pershing said it would "engage in discussions with management, the board, other stockholders… and other relevant parties concerning the business, management, operations, assets, capitalization, financial condition, governance, strategy and future plans."
Nesvold said that if Pershing pushes for a "strategic tie-up," Berkshire could be the buyer, an outcome that would give BNSF coverage of the entire western U.S. and Canada. Nesvold, according to the JOC, noted that a joint venture with Kansas City Southern could create the first trans-North American railroad.
CP has been struggling this year with severe weather problems. Q3 profit fell 5.3 percent to $184 million as increasing costs surpassed a 4.3 percent increase in revenue, to $1.32 billion.
Source:
http://www.workingforest.com/canadian-pacific-marked-sale/
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Thanks to an anonymous eagle-eyed tipster for connecting these dots. 
Comments:
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Possibility of justice for BC Rail, I say to you, "By the power of NAFTA! Begone!"
# posted by 
: November 11, 2011 at 12:21 p.m.
: November 11, 2011 at 12:21 p.m.
Not going to happen, buffet likes well run business. CP is out of the running!
# posted by : November 11, 2011 at 12:46 p.m.
: November 11, 2011 at 12:46 p.m.
Profits to earnings counts could be better, but CP is hardly a corporate wreck. CEOs who dump companies based on bad quarters are no better than the junk-finance peddlers that destroyed the US economy.
# posted by : November 11, 2011 at 4:35 p.m.
: November 11, 2011 at 4:35 p.m.
There is no more wrong with the CPR, than there was with the BCR and the
CNR. Canada will be the largest state in the U.S.A.
Read: Harper gives a speech in New York, at The Council of Foreign Relations. This was back in Sept. 25/2007. There you will see, the evil agenda Harper has for our country. Harper made it abundantly clear, what the fate for Canada is.
CNR. Canada will be the largest state in the U.S.A.
Read: Harper gives a speech in New York, at The Council of Foreign Relations. This was back in Sept. 25/2007. There you will see, the evil agenda Harper has for our country. Harper made it abundantly clear, what the fate for Canada is.
# posted by : November 13, 2011 at 3:07 p.m.
: November 13, 2011 at 3:07 p.m. 
Not a big surprise for me...Gates has huge interest in CN, it makes sense his best friend in business would do the same with CP Rail. That gives the two of them huge control...something they've wanted for ages.
# posted by : November 13, 2011 at 9:20 p.m.
: November 13, 2011 at 9:20 p.m.
No, it's not a big surprise, Leah.
The point is: that's the outline-shape of things to come.
With Harper begging for special trade agreements with China,
it presents a new image of what it means to be Canadian.
And what it meant, to lose BC Rail.
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The point is: that's the outline-shape of things to come.
With Harper begging for special trade agreements with China,
it presents a new image of what it means to be Canadian.
And what it meant, to lose BC Rail.
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