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BUSINESS A25
Wednesday 17 February
Canadian Pacific seeking early approval of merger structure
JOSH FUNK takes to get NS to the ta- roughly $1.8 billion in an-
AP Business Writer ble,” Harrison said. nual costs from the com-
OMAHA, Neb. (AP) — Ca- Norfolk Southern praised bined railroad.
nadian Pacific plans to ask the move, but didn’t say Norfolk Southern has said
federal regulators for pre- whether it would help Ca- those cuts would likely
liminary approval of the nadian Pacific apply for jeopardize the customer
structure of its proposed the ruling. service and performance
takeover of Norfolk South- “Canadian Pacific has ac- that customers expect. It
ern railroad. knowledged that there is a is pursuing its own plan to
CP CEO Hunter Harrison path to determine the va- cut $130 million in costs
said Tuesday his railroad is lidity of its proposed voting this year and create more
taking this step because trust structure by seeking a than $650 million in annual
shareholders of both rail- declaratory order from the cost savings by 2020 while
roads recommended it. STB,” the railroad said. improving service.q
The move may put addi- Norfolk Southern has also
tional pressure on Norfolk Canadian Pacific Railway CEO Hunter Harrison speaks at the said it believes Canadian
Southern to engage in talks company’s annual meeting in Calgary, Alberta. Canadian Pa- Pacific’s offers remained
ahead of a shareholder cific plans to ask federal regulators for preliminary approval of “grossly inadequate” even
vote this spring that Cana- the structure of its proposed takeover of Norfolk Southern rail- as they approached $30
dian Pacific requested. road. Harrison said Tuesday, Feb. 16, 2016, his railroad is taking billion.
“We still think this action this step because shareholders of both railroads recommended Canadian Pacific plans to
is unnecessary, however, it. ask Norfolk Southern share-
we believe listening to the holders at their annual
shareholders — the owners (Larry MacDougal/AP) meeting to vote on wheth-
of our respective compa- er they want the two rail-
nies — is important,” Harri- rail mergers have been ap- approved, so it has recom- roads to discuss a possible
son said proved since regulators im- mended that Canadian merger. But the nonbind-
Part of the reason why Nor- posed tough rules on them Pacific seek this preliminary ing vote won’t include de-
folk Southern has rejected in 2001. approval of the structure. tails of a specific proposal.
all of Canadian Pacific’s Canadian Pacific has pro- CP officials have said they Canadian Pacific officials
offers so far is because posed setting up a voting don’t see a problem with have said they believe
it questions whether the trust and installing Harrison the proposed trust struc- combining the two rail-
U.S. Surface Transporta- as CEO of Norfolk Southern ture. roads would create a more
tion Board would approve while the deal is reviewed. “We are skeptical that the efficient operation that
such a deal or would im- Norfolk Southern believes STB will give a definitive rul- could move more freight
pose onerous conditions that would violate a prohi- ing, especially when NS will without adding tracks. CP
on the railroads. No major bition against an acquiring not even sit down with us, has also said it could cut
railroad taking control of but we are willing to go the
its target before a deal is extra mile if that is what it
Buffett’s firm releases details of annual meeting
JOSH FUNK event. ate more overseas as po- Andy Serwer said.
AP Business Writer The heart of the meeting is tential buyer ofbusinesses. “The Berkshire Hathaway
OMAHA, Neb. (AP) — Any- when Buffett and his Vice Buffett said broadcasting shareholders’ meeting has
one who wants to watch Chairman Charlie Munger the meeting online might been called the ‘Wood-
Warren Buffett dispense spend several hours an- help that. A recording of stock of Capitalism,’ and
advice at Berkshire Ha- swering questions from the meeting will be avail- we’re thrilled to offer ac-
thaway’s annual meeting shareholders and a panel able on Yahoo Finance for cess to a worldwide audi-
without making the pilgrim- of reporters and analysts. 30 days after the annual ence for the first time ever,”
age to Omaha this spring The meeting broadcast will meeting, Editor in Chief Serwer said.q
can follow it online. start at 9 a.m. Central on
Berkshire and Yahoo said April 30 with coverage of
Tuesday that Yahoo Fi- some of the surrounding
nance would broadcast events, including the ad-
the meeting this spring. joining exhibit hall where
This year’s meeting on Berkshire subsidiaries dis-
April 30 will be the first one play and sell products.
streamed online. “Over the That 200,000-square-foot
past 50 years, we’ve seen a exhibit hall is always filled
tremendous increase in the with booths from Berkshire’s
interest around our share- See’s Candy, Dairy Queen,
holders meeting,” Buffett Fruit of the Loom, Justin
said. Last year, more than Boots, the BNSF railroad
40,000 people from around and other subsidiaries.
the globe filled an Omaha Most of the companies
arena and several over- Berkshire owns and the
flow rooms for the meeting. more than 300,000 em-
Many people attend the ployees it owns are based
Berkshire meeting every in the United States, but
year and enjoy getting to- Buffett has been working
gether with friends at the to market the conglomer-
