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U.S. Justice Department Urges Rejection of CP, Norfolk Southern Voting Trust

(CBC News)

Canadian Pacific Railway’s proposed takeover of Norfolk Southern Railway ran into more opposition on Friday, with the U.S. Department of Justice urging a regulator to reject preliminary approval of the $28-billion US merger.

The Justice Department called on the U.S. Surface Transportation Board, which is reviewing the proposed union, to reject early approval of a voting trust structure that CP has put forward.

“Canadian Pacific’s voting trust proposal would compromise Norfolk Southern’s independence and effectively combine the two railroads prior to completion of the STB’s review,” said assistant attorney general Bill Baer of the Justice Department’s Antitrust Division. Click here to read more.