Canadian Pacific is considering all of its legal options in response to major U.S. railroads that have publicly stated their opposition to its proposed takeover of Norfolk Southern Corp., CP announced Wednesday.
Other Class I railroads are working collectively to block CP's effort to "create a pro-customer, competition-enhancing combination" with NS, CP officials said in a prepared statement.
"It is unfortunate that CP must consider the use of litigation to ensure a level playing field and protect its rights, but the company has concluded that the actions of those competitors should not be allowed to block the creation of a railroad that offers unparalleled customer service and competitive rates that will support the success of the shippers, the industries it serves and the broader economy," CP officials said.
Also this week, CP announced that it has petitioned the U.S. Surface Transportation Board for a declaratory order that would confirm the voting trust structure that CP wants to pursue as part of its proposed merger with NS.
The Class I filed the petition in response to CP and NS shareholder requests that the STB clarify its views on the voting trust model ahead of any formal application that CP would file, CP officials said.