Deals
Union Pacific Joins Rail-Merger Debate With Gridlock Warning
- Canadian Pacific's bid for Norfolk faces `significant' hurdles
- Traffic concern focuses on Chicago, U.S.'s busiest rail hub
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Union Pacific Corp. jumped into the debate over railroad consolidation by saying that Canadian Pacific Railway Ltd.’s proposed takeover of Norfolk Southern Corp. risks adding to gridlock at the industry’s crucial Chicago hub.
“A single merger could actually increase congestion in Chicago if the merging parties used shared assets to preference their own traffic,” Union Pacific said in a memo to employees Thursday.