CALGARY, Feb. 25, 2016 /PRNewswire/ - Canadian Pacific
(TSX:CP) (NYSE:CP) has received over 80 letters of support from a
broad cross section of customers for CP's proposal to acquire
Norfolk Southern Corp. (NS); 62 of these letters have been posted
to the Surface Transportation Board (STB) website. That brings the
number of letters from shippers in support of the proposed CP-NS
combination to more than three for every one shipper letter in
opposition.
CP believes that its proposed combination with NS will introduce
alternative options for re-routing traffic around areas of
congestion, create new opportunities to generate the most efficient
route for rail shipments, allow CP-NS to provide end-to-end service
to customers and improve overall service for shippers of all sizes
across North America.
These letters of support demonstrate that shippers with business
in both the United States and
Canada agree that the proposed
combination would be beneficial.
"CP is committed to providing the best service at the best
price," said Keith Creel, CP's
President and COO. "Change is necessary to support continued
economic growth, and continued growth in the U.S. economy is
dependent on North American rail service meeting current and future
demand. Without the ability to add infrastructure or build more
track, options to increase capacity are becoming
limited."
The proposed transaction offers the best opportunity to improve
efficiency of the existing network and create much needed
incremental capacity without adding infrastructure, all while
improving service for shippers. A combined CP-NS railroad would
enhance competition and better support the success of the shippers
and industries it serves, and satisfy the STB and Canadian
regulators.
Earlier this month, CP submitted a resolution to NS shareholders
to ask their board of directors to meet with CP. CP is also seeking
a declaratory order from the STB as a means to better understand
the STB's views on the proposed voting trust model ahead of any
formal application.
For more information on CP's proposal to NS, visit
CPconsolidation.com.
Forward Looking Statement
This news release contains certain forward-looking information
within the meaning of applicable securities laws relating, but not
limited, to CP's proposal to NS regarding a possible business
combination, CP's shareholder proposal to NS, the anticipated
results and benefits of the proposed transaction and matters
relating to regulatory approvals and changes. This forward-looking
information also includes, but is not limited to, statements
concerning expectations, beliefs, plans, goals, objectives,
assumptions and statements about possible future events,
conditions, and results of operations or performance.
Forward-looking information may contain statements with words or
headings such as "financial expectations", "key assumptions",
"anticipate", "believe", "expect", "plan", "will", "outlook",
"should" or similar words suggesting future outcomes.
Undue reliance should not be placed on forward-looking
information as actual results may differ materially from the
forward-looking information. Forward-looking information is not a
guarantee of future performance. By its nature, CP's
forward-looking information involves numerous assumptions, inherent
risks and uncertainties that could cause actual results to differ
materially from the forward-looking information, including but not
limited to the following factors: the ability of the parties to
agree to the terms of a proposed transaction; the ability of the
parties to obtain the required regulatory approvals; the ability to
recognize the financial and operational benefits of the
transaction; changes in business strategies; general North American
and global economic, credit and business conditions; risks in
agricultural production such as weather conditions and insect
populations; the availability and price of energy commodities; the
effects of competition and pricing pressures; industry capacity;
shifts in market demand; changes in commodity prices; uncertainty
surrounding timing and volumes of commodities being shipped via CP;
inflation; changes in laws and regulations, including regulation of
rates; changes in taxes and tax rates; potential increases in
maintenance and operating costs; uncertainties of investigations,
proceedings or other types of claims and litigation; labour
disputes; risks and liabilities arising from derailments;
transportation of dangerous goods; timing of completion of capital
and maintenance projects; currency and interest rate fluctuations;
effects of changes in market conditions and discount rates on the
financial position of pension plans and investments; and various
events that could disrupt operations, including severe weather,
droughts, floods, avalanches and earthquakes as well as security
threats and governmental response to them, and technological
changes. The foregoing list of factors is not exhaustive.
These and other factors are detailed from time to time in
reports filed by CP with securities regulators in Canada and the United States. Reference
should be made to "Management's Discussion and Analysis" in CP's
annual and interim reports, Annual Information Form and Form 40-F.
Readers are cautioned not to place undue reliance on
forward-looking information. Forward-looking information is based
on current expectations, estimates and projections and it is
possible that predictions, forecasts, projections, and other forms
of forward-looking information will not be achieved by CP. Except
as required by law, CP undertakes no obligation to update publicly
or otherwise revise any forward-looking information, whether as a
result of new information, future events or otherwise.
Rule 425 Disclosure
This announcement is neither an offer to purchase or exchange nor a
solicitation of an offer to sell securities. Subject to future
developments, additional documents regarding the proposed
transaction may be filed with the SEC. Investors and security
holders are urged to read such disclosure documents regarding the
proposed transaction, if and when they become available, because
they will contain important information. Investors and
security holders may obtain a free copy of the disclosure documents
(when they are available) and other documents filed by CP with the
SEC at the SEC's website at www.sec.gov. The disclosure documents
and these other documents may also be obtained for free from CP at
http://www.cpr.ca/en/investors or by directing a request to
Canadian Pacific Railway Limited, 7550 Ogden Dale Road S.E.,
Calgary, Alberta, Canada, T2C 4X9,
Attention: Office of the Corporate Secretary.
CP and its directors, executive officers and other employees may
be deemed to be participants in any solicitation of CP or NS
shareholders in connection with the proposed transaction.
Information about CP's executive officers and directors is
available in CP's Annual Report on Form 40-F for the year ended
December 31, 2014, which was filed
with the SEC on February 23, 2015.
Additional information about the interests of potential
participants will be included in any proxy statement filed in
connection with the proposed transaction.
About Canadian Pacific
Canadian Pacific (TSX:CP)(NYSE:CP) is a transcontinental railway in
Canada and the United States with direct links to eight
major ports, including Vancouver
and Montreal, providing North
American customers a competitive rail service with access to key
markets in every corner of the globe. CP is growing with its
customers, offering a suite of freight transportation services,
logistics solutions and supply chain expertise. Visit cpr.ca to see
the rail advantages of Canadian Pacific.
SOURCE Canadian Pacific