OS management will celebrate their victory. Just like POT management did a few years ago, when they got the government to step in, change the rules, and interfere with the free market.
POT management has been as happy as pigs in slop ever since.
POT shareholders...not so much.
Either 60 days was the legal limit, or 120 was.
So they decided 90.
Because Canada is not only bright red socialist, but too gutless to pick a side, and too soft to say no to anyone.
I say let the bid die. Increasing the company's interests to any more assets that are subject to the whims of these commie lunatics is simply masochistic.
Hunt for some deals in Texas. Where bidnez is bidnez..
You'd think that the four "highly credible" potential bidders (!!) --- given that they each know there's three others in their well-regarded little group --- would have expedited their offer to the table as fast as possible to tie this 'prize' down.
How screwed up is a country that meekly tolerates a mass shooting of innocent people every few weeks, but puts so much effort and focus, defying all common sense and regulatory oversight, to deny the construction of one perfectly compliant oil pipeline ?
This place is utterly and completely effed.
China, please be gentle.
BTW...'spite' is hardly a profitable investment thesis.
But when it comes to wealth creation and free enterprise, the typical Canadian is precisely this petty. Which explains why Canada hasn't managed to get beyond the lowest rung on the economic development ladder: natural resource extraction.
COS management won't eat crow no matter what happens.
They've been paid enough for doing virtually nothing to eat well for the rest of their lives.
Imperial Oil could have made a full and binding bid within about 6 hours.
So this red herring of 60 days vs. 120 days doesn't matter...they're not going to bid.
As for the rest of the world: anyone who even thinks about beating out both Suncor and Imperial for these assets would be susceptible to the world's worst case of "winner's regret" ever. A huge, career-ending type decision. The kind China used to routinely make, 'til they got they RRRSes handed to them.
But this is Canada, the land of anti-capitalism government. So if they extend to the 120 days, and Suncor walks as promised/threatened, COS will "win". Fear will then again replace greed, and that C$10 from a week ago is going to look like a lot more money than it ever did before.
From what I've witnessed on this board that there's at least a few NSC shareholders who are idiotic.clueless mutes who aren't smart enough to successfully vote a 'No' option that Squires prefers...though he does these shareholders most dearly.
They'd have to first approve special ballots so that these complete morans could put a circle around a Thumbs Down symbol. Or better yet, just point to it and grunt.
Only then would those 4 or 5 dozen shares get properly tallied.
NSC is an inefficient operator. One material symptom of this is having millions of dollars tied up and wasting away in underperforming, nonperforming, and completely unnecessary assets of many kinds. Real estate, in the form of sub-optimal or completely unnecessary switching yards, and sitting in growing, valuable urban areas, is a big one.
That's real money. Shareholders' money.
And it's money that doesn't improve the business at all. In fact, it hinders improvement by masking and disguising inefficiencies. And these terminals effectively act as logisitcs millstones, limiting new strategic thinking.
NSC should have come this conclusion and done something about it years ago. But it didn't.
So ask them about that. It's your money.
Not enough "offsetting revenue w intermodal"? Are you suggesting that priority merchandise ships for about the same GTM rate as milk-run, low value coal does?
Because it doesn't. Not even close. Which is why all the rails want to grow that business. But only the ones that provide adequate value and service level for the price will get it.
And now we're back to my post.
"Suncor and Canadian Oil Sands CEOs Both Say They've Won"
I can see genuine merit in COS management's claim. They've made a fortune for themselves over the years doing nothing more than run a glorified Western Union money transfer office.
Receive oil revenue, cut cheques and distribute to unit/shareholders, keep a nice chunk for yourselves. Repeat.
The "strategy" is to become a huge intermodal player.
Well...strategy is a bit grand a term. The baseless hope.
And it won't happen, because CSX doesn't offer a good enough service for shippers to give them the business. And current CSX management simply doesn't know how to improve the service.
I know someone that knows exactly how to do it...a bona fide freight rail expert.
But he's busy now.
".....to fulfill Harrison's dream of creating a railway that touches three coasts..."
I've read this BS phrase at least a dozen times in the two weeks since the NS rumors broke. For starters, Harrison already "been there, did that" 18 years ago when he spearheaded the deal to put the IC and CN together (....please Google the CN network map someday, putzes!).
Secondly, anyone who knows anything at all about Harrison's career achievements and unrelenting focus on shareholder value will know this to be a juvenile assessment fabricated by lazy fools.
Here's' something you might consider being thankful for :
When you order something on Amazon, they don't have to ship it halfway to your house using UPS, and then the other half way va FedEx,. with the package sitting in Tulsa for a day or two while they transfer it between.
Strange? That's what the freight railways have to do. Because American railways are stuck in Bizarro world.
Pfizer just bought Allargan and will move to Dublin to avoid paying US income taxes.
Meanwhile, if you want to ship new refrigerators from Atlanta to Seattle, those rail cars sit in a yard for anywhere from a few hours to a couple days waiting to be switched from one railway to at least one other to get there.
Because Washington is a corrupt, incompetent cess pool, and the STB is where idiots work.
...Desperate is as desperate does!....
Oh, and instead of earning their enormous paycheques extracting the best, highest offer for you to consider and vote on (while still running the railway normally and serving customers), they'll spend well into 10 figures on lawyers, lobbyists, bankers, PR consultants, hotels, and private jets.
Just so you can't vote.