Canadian Pacific, spurned by both CSX and NS in merger deals is now going to the courts. Seems they believe the Class 1's were colluding against them in attempting the mergers which is an anti trust violation.
Kind of funny, but if you want to date a girl and she keeps saying no, you can't file suit against her friends for saying bad things about you.
http://trn.trains.com/news/news-wire/2016/03/02-cp-threatens-to-sue (http://trn.trains.com/news/news-wire/2016/03/02-cp-threatens-to-sue)
CP considers legal action against unnamed Class I railroads
CALGARY, Alberta — Canadian Pacific may take legal action against Class I railroads that have publicly stated they are working together to block CP's proposed acquisition of Norfolk Southern.
"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 said in a news release today.
The release did not mention the specific railroads that may face the wrath of CP's legal team.
But in January CP singled out executives from BNSF Railway, CSX, and Union Pacific when asking the U.S. Justice Department to investigate whether the railroads violated antitrust laws during meetings they had regarding potential rail mergers.
Earlier this year Class I executives – including BNSF Executive Chairman Matt Rose, CSX CEO Michael Ward, and UP CEO Lance Fritz – said they oppose further consolidation in the rail industry. They also met, in the presence of legal counsel, to discuss the merger landscape. And they have been lobbying shippers and lawmakers, as well as having discussions with regulators.
CP asked the Justice Department to review the actions of the Class I executives. It did not name the railroads or the executives. But its letter included three Reuters news stories that quoted Fritz, Rose, and Ward.
"We are deeply concerned that these actions are being taken for the primary purpose of restraining trade in violation of Section 1 of the Sherman Act, and not for any legitimate purpose that would benefit the public or enhance competition in the U.S. railroad industry," Matthew Reilly, a lawyer working for CP, wrote in CP's Jan. 19 letter to the Justice Department.
Antitrust laws are designed, in part, to prevent anticompetitive business practices. But they do allow competitors to work together under certain limited circumstances.
"CSX has not been part of, nor is it aware of, any anti-competitive activities related to mergers, or otherwise, in the railroad industry," CSX spokeswoman Melanie Cost said today.
Spokesmen for BNSF and UP did not immediately respond to requests for comment. In January, BNSF and UP maintained that their meetings were legal.
JBJ called CP the 'Donald Trump of railroads"LOL. What is wrong with CP? Maybe it's something in the maple syrup up there.
http://www.bizjournals.com/jacksonville/news/2016/03/02/csx-rival-becomes-donald-trump-of-railroads.html
Quote from: spuwho on March 02, 2016, 09:42:14 PM
Kind of funny, but if you want to date a girl and she keeps saying no, you can't file suit against her friends for saying bad things about you.
Exactly. LOL they are so butthurt.