Canadian Pacific welcomes STB approval
30 Settembre 2008 - 6:28PM
PR Newswire (US)
CALGARY, Sept. 30 /PRNewswire-FirstCall/ -- Canadian Pacific
Railway Limited (TSX/NYSE: CP) announced today that it has
received regulatory approval from the US Surface Transportation
Board (STB) to acquire control of the Dakota, Minnesota &
Eastern Railroad Corporation and its subsidiaries: Iowa, Chicago
& Eastern Railroad and Cedar American Rail Holdings. The STB
denied all requests for conditions other than those agreed to
voluntarily by CP. The official effective date of the final
decision is October 30, 2008. "The DM&E is an excellent fit for
Canadian Pacific making this a strategic end-to-end addition to our
network," said Fred Green, President and Chief Executive Officer of
CP. "This is also a positive development for CP, DM&E and
IC&E customers. CP customers will have direct single line
access to the Midwest US markets and the Kansas City gateway, which
will improve fluidity to and from the Southwest US and Mexico.
DM&E and IC&E customers will have access to single line
haul opportunities to new markets and access to CP's car fleets."
CP's ability to provide single line service between DM&E and
IC&E served origins and CP destinations will enhance rail
service, while its commitment to make infrastructure investments
across the DM&E and IC&E network will improve safety and
fluidity. "Together, we will build on the significant improvements
the DM&E has made in operating efficiency and safety over the
past several years and remain committed to our shareholders, our
employees, our customers and the communities we serve," said
Kathryn McQuade, CP's Executive Vice President and CFO. The
DM&E is the largest regional railroad in the U.S. and the only
Class II railroad that connects and interchanges traffic with all
seven Class I railroads, connecting with Canadian Pacific at
Minneapolis, Winona, MN and Chicago. The DM&E is expected to
deliver double digit top-line revenue growth and EBITDA in 2008. It
is headquartered in Sioux Falls, SD and has approximately 1,100
employees, 2,500 miles of track, including approximately 500 miles
of trackage rights, and rolling stock that includes 7,200 rail cars
and 150 locomotives. The DM&E serves eight states: Illinois,
Iowa, Minnesota, Missouri, Nebraska, South Dakota, Wisconsin and
Wyoming with access to Chicago, Minneapolis/St. Paul, Kansas City
and key ports. "While this is a day to celebrate, it is also very
important that the qualities that have made the DM&E, IC&E
and Cedar American so successful stay as vibrant as they were
before the acquisition," added Green. "I look forward to building
and strengthening our company, together." Note on forward-looking
information This news release contains certain forward-looking
statements relating but not limited to the proposed acquisition
transaction, anticipated financial performance and business
prospects. Undue reliance should not be placed on forward-looking
information as actual results may differ materially. By its nature,
Canadian Pacific's forward-looking information involves numerous
assumptions, inherent risks and uncertainties, including but not
limited to the following factors: changes in business strategies;
general North American and global economic 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 laws and
regulations, including regulation of rates; changes in taxes and
tax rates; potential increases in maintenance and operating costs;
uncertainties of litigation; labour disputes; risks and liabilities
arising from derailments; timing of completion of capital and
maintenance projects; currency and interest rate fluctuations;
effects of changes in market conditions on the financial position
of pension plans and investments, and various events that could
disrupt operations, including severe weather conditions, security
threats and governmental response to them, and technological
changes. There are factors that could cause actual results to
differ from those described in the forward-looking statements
contained in this news release. These more specific factors are
identified and discussed in the Outlook section and elsewhere in
this news release with the particular forward-looking statement in
question. Except as required by law, Canadian Pacific undertakes no
obligation to update publicly or otherwise revise any
forward-looking information, whether as a result of new
information, future events or otherwise. About Canadian Pacific
Canadian Pacific, through the ingenuity of its employees located
across Canada and in the United States, remains committed to being
the safest, most fluid railway in North America. Our people are the
key to delivering innovative transportation solutions to our
customers and to ensuring the safe operation of our trains through
the more than 900 communities where we operate. Come and visit us
at http://www.cpr.ca/ to see how we can put our ingenuity to work
for you. Canadian Pacific is proud to be the official rail freight
services provider for the Vancouver 2010 Olympic and Paralympic
Winter Games. DATASOURCE: Canadian Pacific Railway CONTACT: Media,
Leslie Pidcock, Tel.: (403) 319-6878, e-mail: ; Investment
Community, Janet Weiss, Assistant Vice-President Investor
Relations, Tel.: (403) 319-3591, e-mail:
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