RAILforum: CN to acquire Wisconsin Central?

This is topic CN to acquire Wisconsin Central? in forum Railroad News at RAILforum.

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Posted by MPALMER (Member # 125) on :

According to the Wall St. Journal & Bloomberg, CN is planning to buy WS for about $800M.

Posted by DNatureofDTrain (Member # 432) on :

I copy pasted this information From.
Erik's Rail News website. It was on the fist page.

Here is the URL http://surf.to/railnews

"CN Buys Wisconsin Central

Canadian National is buying Wisconsin Central for US$1,2bn, the companies announced on Tuesday. The takeover cost includes US$400m in WCTC debt. The deal is for the WC railway, not the corporation itself, which owns other railways around the world. CN chief executive Paul Tellier said in a release that the merger would "secure a link in CN's NAFTA network - the mainline railroad connecting Chicago, Superior, Wis., and CN's transcontinental network across Canada." Under a 1998 agreement, WCTC already hauls CN freight between Superior and Chicago. CN has previously taken over Illinois Central but broke off a merger with Burlington Northern Santa Fé after the US Surface Transportation Board competition authority put a moratorium on reviewing mergers. "Both CN and WCTC believe the transaction should be treated as a minor one by the STB, but if it is not, CN reserves the right to terminate the merger agreement without penalty," CN said. See also the press release. (January 30th, thanks Bengt Mutén)"

Posted by michiganrailfan (Member # 605) on :

This buy out could lead to new short lines. Especially in Michigan's Upper Peninsula! There isn't much buiseness to keep the CN up that way at all. I have seen many other discusions on this subject from many other boards.