CP Touts Letters Supporting Merger with NS

Canadian Pacific said it has received more than 80 letters of support from shippers who favor CP’s proposed merger with Norfolk Southern.

In a statement, CP claimed that the ratio of letters in support as opposed to opposing the merger is more than 3-1 in favor of the merger.

Canadian PacificSixty-two of the letters of support have been posted on the U.S. Surface Transportation Board website.

NS has rejected three overtures from CP to take control of NS by buying its stock.

In the meantime, the Transportation Trades Department of the AFL-CIO has expressed “grave concerns” that the proposed CP-NS merger might lead to a “final round of consolidation” in the railroad industry, which would result in “further reducing jobs, safety and service.”

The labor union said it remembers having lived through the “mega-mergers during the 1980s and 1990s that have left this country with only seven Class I freight railroads, transportation labor understands . . . the devastating impact these transactions can have on jobs, freight service and safety.”

TTD called on the STB, regulators and legislators “to use their review and oversight authorities to carefully monitor CP’s actions and reject merger schemes that harm the economy and the public interest.”

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