Deals
U.S. Army Takes Aim at Ackman-Backed Railroad Merger Plan
- Canadian Pacific move could harm national defense, letter says
- Army submits comments before ruling on takeover of Norfolk
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The U.S. Army said a Canadian Pacific Railway Ltd. takeover of Norfolk Southern Corp. has the potential to harm national defense, adding opposition to a possible merger plan backed by billionaire investor Bill Ackman.
The Army told the Surface Transportation Board that it opposed Canadian Pacific’s plan to have Chief Executive Officer Hunter Harrison step down and become the head of Norfolk Southern as part of a voting trust structure before the regulator’s final approval of a merger. Canadian Pacific has asked the board to rule by May 6 if its voting-trust plan is permissible.