CN + WC = CN

Discussion in 'The Real Thing- North America' started by Gregg Mahlkov, Jan 30, 2001.

  1. Yet another flag is falling.... This morning, Canadian National announced it is "merging" with Wisconsin Central, by buying all of WC's outstanding stock. Ed Burkhardt lost the proxy fight but forced the company to sell out. The 42.5 % stake in English, Welsh & Scottish is up for sale, CN doen't want it.
  2. Dave Flinn

    Dave Flinn Member

    Yes, I saw that news item on Note that it still has to pass the regulators, however. Apparently there is some question as to whether the US moratorium on mergers applies to this case or not. My personal feeling is that it WILL go through, but it will be interesting to see what actually happens.

    Dave Flinn, Northeast Regional Vice President, NRHS
    National Director, Cornell Chapter, NRHS
    Life Member NMRA, NER, NFR,
    Danbury Railway Museum
  3. George

    George Member

    I thought WC also had a piece of action in New Zealand. What about that?

    The purchase probably will go through.

  4. No doubt WC's stake (less than 30%) in TraNZrail will be sold also. Latest is that CN will buy Canadian Pacific's rail operations as well! Last year CN tried to merge with BNSF. I think Paul Tellier has his eye on every inch of track in North America.
  5. George

    George Member

    My thumb is down only in hope it never occurs!

    I've heard rumblings about CN & CP, but I don't believe it. Then again, I'm still reeling over the illogical creation of the Penn Central, so anything's possible. Should the New York Central have merged with the C&O in 1958, or what? We'd probably have the same kind of alignment today regardless. Business and railroading are like aircraft design. If you put together an equation and test it in a wind tunnel, the American, British and Soviet designers always come out with the same result.

    Ever since the purchase of Illinois Central by Canadian National, I think the next logical step in progression would be for CN to purchase trackage reaching deep into Mexico's industrial regions.

    If the economy goes south, the railroads will stay north. [​IMG]

  6. kf4jqd

    kf4jqd Active Member

    Hello All:

    I have heard about the merger too. I live in Central Wisconsin! Actually, the railroad fans are happy about the merger. The local hobby shoppe is across the street from the WC tracks that feeds coal to Weston 3 Power Plant. They can't waite to see those new engines!

    I do have a concern. Last year, Governor Tommy Thompson, now on President's Bush's cabinet, talked about high speed rail though out the state! He talked with the WC and they liked the idea. However, they were concern that WC would have to redo some of the tracks. For example; Here in the Wausau area. They have to use switchers on some of their tracks because they make to sharp of a turn. Thompson did say that the state would help pay for it. With a new ownership and a new governor. Would this still happen? I don't know. I would hope it would.

    Just a little note on Thompson. When he was asked to be part of Bush's cabinet. He wanted to be Sec of Transportation. NOT of Health and Human Resources. The reason being he believes in high speed rail in the US. Mainly to help the congestion at our national airports. I guess it would help to since he was on Amtrak's board! He is not known for his devotion to our nations railroads but welfare reform. I guess President G.W. Bush thought this was more important than trains! We need more politians in this country to have the same devotion as Thompson. Plus, I hope that his dream for high speed rail would happen in Wisconsin and the rest of the country.

    All the best,

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