Latest news with #Ancora
Globe and Mail
5 days ago
- Business
- Globe and Mail
Union Pacific exploring Norfolk Southern rail takeover, reports say
Union Pacific, the largest U.S. freight railroad operator, is exploring a possible acquisition of Norfolk Southern to create a US$200-billion coast-to-coast rail network, a person familiar with the matter said. Talks are in early stages, the person said, with no guarantee talks will progress or that any deal would pass what would be expected to be a lengthy, detailed regulatory review. The two companies declined to comment. Any deal to unite two of the six largest freight rail operators in North America is likely to draw intense regulatory scrutiny. Major shippers in the steel, chemical and grain industries are expected to lobby against any further concentration in an industry that has consolidated from over 100 Class I railroads in the 1950s to just six today. Union Pacific UNP-N shares fell 2.7 per cent in Friday afternoon trading, while Norfolk Southern NSC-N rose 1.52 per cent. A combination would mark a shift in the U.S. freight rail landscape, creating a single-line network stretching from coast to coast, changing the current divide between western and eastern regional operators. Norfolk is recovering from a tumultuous past couple of years that included the firing of its previous CEO amid ethics investigations, a boardroom battle with activist Ancora, and a train derailment that cost the company about $1.4-billion. A merger between Union Pacific and Norfolk Southern would create the first modern West-to-East single-line freight railroad in the U.S. Earlier this year, Union Pacific CEO Jim Vena said a transcontinental merger would be good for customers, eliminating the need for interchanges between carriers in Chicago – a longstanding bottleneck – and reducing costly delays for shippers. But critics warn that such consolidation could reduce competition, a possible concern for regulators. With fewer major players in the market, shippers may face higher costs and diminished service options. 'We suspect certain shipper groups could get vocal on the perceived lost competition a merger would bring,' Barclays analyst Brandon R. Oglenski said. Discussions between the two operators, first disclosed by Semafor, spurred speculation that competitors would also consider concentration. 'History teaches that mergers and acquisitions within the railroad industry will inspire and motivate additional M&A,' said Mike Steenhoek, executive director of the Soy Transportation Coalition. That happened earlier this decade when Canadian Pacific offered to acquire Kansas City Southern, which prompted CP's main competitor – Canadian National – to submit their own offer to acquire Kansas City Southern. Ultimately the Canadian National offer was not allowed to proceed, and Canadian Pacific did acquire Kansas City Southern in 2023 – creating the first railroad to link Canada, the U.S. and Mexico. In 2024, Union Pacific led the industry with $24.3-billion in revenue, followed by BNSF (privately held, owned by Berkshire Hathaway), CSX CSX-Q, Canadian National CNR-T, Norfolk and Canadian Pacific Kansas City CP-T. 'The energy and momentum toward the remaining two U.S. based Class I railroads – BNSF and CSX – pursuing a merger would be considerable,' Steenhoek said. A regulatory decision could take 16 to 22 months, with merging carriers required to notify the Surface Transportation Board three to six months before filing an application, followed by a year-long evidentiary review and a final ruling within 90 days, Oglenski said. A potential Union Pacific acquisition of Norfolk Southern could have material synergy, he said. 'Any deal would face serious review from regulators,' said Emily Nasseff Mitsch, equity analyst at CFRA.
Yahoo
5 days ago
- Business
- Yahoo
Union Pacific, Norfolk Southern explore cross-continental railroad merger, source says
By Sabrina Valle NEW YORK (Reuters) -Union Pacific, the largest U.S. freight railroad operator, is exploring a possible acquisition of Norfolk Southern to create a $200 billion coast-to-coast rail network, a person familiar with the matter said. Talks are in early stages, the person said, with no guarantee talks will progress or that any deal would pass what would be expected to be a lengthy, detailed regulatory review. The two companies declined to comment. Any deal to unite two of the six largest freight rail operators in North America is likely to draw intense regulatory scrutiny. Major shippers in the steel, chemical and grain industries are expected to lobby against any further concentration in an industry that has consolidated from over 100 Class I railroads in the 1950s to just six today. Union Pacific shares fell 2.7% in Friday afternoon trading, while Norfolk Southern rose 1.52%. A combination would mark a shift in the U.S. freight rail landscape, creating a single-line network stretching from coast to coast, changing the current divide between western and eastern regional operators. Norfolk is recovering from a tumultuous past couple of years that included the firing of its previous CEO amid ethics investigations, a boardroom battle with activist Ancora, and a train derailment that cost the company about $1.4 billion. CONCENTRATION A merger between Union Pacific and Norfolk Southern would create the first modern West-to-East single-line freight railroad in the U.S. Earlier this year, Union Pacific CEO Jim Vena said a transcontinental merger would be good for customers, eliminating the need for interchanges between carriers in Chicago — a longstanding bottleneck — and reducing costly delays for shippers. But critics warn that such consolidation could reduce competition, a possible concern for regulators. With fewer major players in the market, shippers may face higher costs and diminished service options. "We suspect certain shipper groups could get vocal on the perceived lost competition a merger would bring," Barclays analyst Brandon R. Oglenski said. Discussions between the two operators, first disclosed by Semafor, spurred speculation that competitors would also consider concentration. "History teaches that mergers and acquisitions within the railroad industry will inspire and motivate additional M&A," said Mike Steenhoek, executive director of the Soy Transportation Coalition. That happened earlier this decade when Canadian Pacific offered to acquire Kansas City Southern, which prompted CP's main competitor – Canadian National – to submit their own offer to acquire Kansas City Southern. Ultimately the Canadian National offer was not allowed to proceed, and Canadian Pacific did acquire Kansas City Southern in 2023 - creating the first railroad to link Canada, the U.S. and Mexico. In 2024, Union Pacific led the industry with $24.3 billion in revenue, followed by BNSF (privately held, owned by Berkshire Hathaway), CSX, Canadian National, Norfolk and Canadian Pacific Kansas City. "The energy and momentum toward the remaining two U.S. based Class I railroads – BNSF and CSX – pursuing a merger would be considerable," Steenhoek said. A regulatory decision could take 16 to 22 months, with merging carriers required to notify the Surface Transportation Board three to six months before filing an application, followed by a year-long evidentiary review and a final ruling within 90 days, Oglenski said. A potential Union Pacific acquisition of Norfolk Southern could have material synergy, he said. "Any deal would face serious review from regulators," said Emily Nasseff Mitsch, equity analyst at CFRA. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Reuters
5 days ago
- Business
- Reuters
Union Pacific, Norfolk Southern explore cross-continental railroad merger, source says
NEW YORK, July 18 (Reuters) - Union Pacific (UNP.N), opens new tab, the largest U.S. freight railroad operator, is exploring a possible acquisition of Norfolk Southern (NSC.N), opens new tab to create a $200 billion coast-to-coast rail network, a person familiar with the matter said. Talks are in early stages, the person said, with no guarantee talks will progress or that any deal would pass what would be expected to be a lengthy, detailed regulatory review. The two companies declined to comment. Any deal to unite two of the six largest freight rail operators in North America is likely to draw intense regulatory scrutiny. Major shippers in the steel, chemical and grain industries are expected to lobby against any further concentration in an industry that has consolidated from over 100 Class I railroads in the 1950s to just six today. Union Pacific shares fell 2.7% in Friday afternoon trading, while Norfolk Southern rose 1.52%. A combination would mark a shift in the U.S. freight rail landscape, creating a single-line network stretching from coast to coast, changing the current divide between western and eastern regional operators. Norfolk is recovering from a tumultuous past couple of years that included the firing of its previous CEO amid ethics investigations, a boardroom battle with activist Ancora, and a train derailment that cost the company about $1.4 billion. A merger between Union Pacific and Norfolk Southern would create the first modern West-to-East single-line freight railroad in the U.S. Earlier this year, Union Pacific CEO Jim Vena said a transcontinental merger would be good for customers, eliminating the need for interchanges between carriers in Chicago — a longstanding bottleneck — and reducing costly delays for shippers. But critics warn that such consolidation could reduce competition, a possible concern for regulators. With fewer major players in the market, shippers may face higher costs and diminished service options. "We suspect certain shipper groups could get vocal on the perceived lost competition a merger would bring," Barclays analyst Brandon R. Oglenski said. Discussions between the two operators, first disclosed by Semafor, spurred speculation that competitors would also consider concentration. "History teaches that mergers and acquisitions within the railroad industry will inspire and motivate additional M&A," said Mike Steenhoek, executive director of the Soy Transportation Coalition. That happened earlier this decade when Canadian Pacific offered to acquire Kansas City Southern, which prompted CP's main competitor – Canadian National – to submit their own offer to acquire Kansas City Southern. Ultimately the Canadian National offer was not allowed to proceed, and Canadian Pacific did acquire Kansas City Southern in 2023 - creating the first railroad to link Canada, the U.S. and Mexico. In 2024, Union Pacific led the industry with $24.3 billion in revenue, followed by BNSF (privately held, owned by Berkshire Hathaway) (BRKa.N), opens new tab, CSX (CSX.O), opens new tab, Canadian National ( opens new tab, Norfolk and Canadian Pacific Kansas City ( opens new tab. "The energy and momentum toward the remaining two U.S. based Class I railroads – BNSF and CSX – pursuing a merger would be considerable," Steenhoek said. A regulatory decision could take 16 to 22 months, with merging carriers required to notify the Surface Transportation Board three to six months before filing an application, followed by a year-long evidentiary review and a final ruling within 90 days, Oglenski said. A potential Union Pacific acquisition of Norfolk Southern could have material synergy, he said. "Any deal would face serious review from regulators," said Emily Nasseff Mitsch, equity analyst at CFRA.
Yahoo
18-06-2025
- Business
- Yahoo
Forward Air Chairman Ousted, Potential Sale Appears in View
Forward Air Corp. chairman George Mayes, Jr. resigned from his post in a win for activist investors looking to take the logistics and trucking company in a different direction—and potentially court new ownership. Chairman Mayes left the position following an election at the company's annual shareholder meeting Wednesday, alongside two other resigning board members, Javier Polit and Laurie Tucker. More from Sourcing Journal How Israeli Footwear Firms Are Being Impacted During Iran Conflict Byte-Sized AI: Perfect Corp. and Nvidia Team Up; LuminX Gets Seed Round Chain Reaction: Dispatch Science CEO Arthur Axelrad on Turning Logistics into a 'Customer Experience Engine' Activist investor Ancora Holdings Group had urged shareholders to vote against the three candidates in the leadup to the vote, with the hedge fund getting support from proxy advisors Glass, Lewis & Co. and Institutional Shareholder Services (ISS). Mayes failed to secure the 50.1 percent of votes required in the shareholder election to stay in his position, effectively forcing him to leave the position. Polit and Laurie Tucker surpassed the threshold and voluntarily resigned as board members. 'This vote is a clear mandate that shareholders expect Forward Air to expeditiously complete a credible strategic review that leads to a sale at a meaningful premium,' said Ancora in a statement. 'Absent the more than 30 percent of shares that were legally committed to vote for the incumbent board, chairman George Mayes, Jr., Javier Polit and Laurie Tucker lost in a landslide, highlighting the substantial level of concern regarding the legitimacy of the board's strategic review. We believe the resignations of these legacy directors will empower the board to carry out a thorough assessment of value-maximizing opportunities.' The Forward Air board first initiated a strategic review of its business in January, after multiple activist investors including Ancora had called for the company to consider a possible sale. 'Looking ahead, we are committed to advancing the company's strategic alternatives review—which is well underway—and continued global transformation in order to improve operating results and maximize shareholder value,' the Forward Air board said in a statement. 'We will continue to work closely with the management team to realize the company's full intrinsic value.' With new board members in charge, it appears prospective buyers are coming out of the woodwork. Four private equity firms—Blackstone, Apollo Global Management, Platin Equity and Clearlake Capital—have expressed interest in acquiring Forward Air, according to a Friday report from Reuters. Clearlake Capital is the largest shareholder of Forward Air, holding a 12.6 percent stake as of March 31. Both Blackstone and Apollo have signed confidentiality agreements with the logistics firm, allowing them to review documents and receive other information to shape a potential bid. Initial takeover bids are due for submission during the first week of July, the report says, but there is no guarantee the PE firms will submit offers. There is also a possibility other suitors may emerge. Forward Air's trajectory took a turn for the worse when it first moved to acquire air, ocean and ground logistics services provider Omni Logistics in August 2023. That decision was panned by both analysts and shareholders alike on multiple grounds. Shareholders were upset that the deal didn't get put to a vote, and saddled Forward Air with $1.85 billion in debt. Analysts were critical of the deal for being convoluted, with freight forwarder customers sharing concerns that Forward was essentially acquiring a competitor. Omni Logistics and Forward Air both sued each other in the months after as the latter sought an out from the deal. Although the merger ended up materializing to kick off 2024, it resulted in the exits of both Forward Air CEO Tom Schmitt and Omni Logistics CEO J.J. Schickel. Upon Schmitt's departure last February, Mayes, a Forward board member since 2021, was installed as independent chairman. Now, the company again seeks to figure out a turnaround plan with a new chair. The Forward Air board appointed independent director Jerome Lorrain as executive chairman to replace Mayes. Lorrain previously served as chief operating officer of third-party logistics provider Ceva Logistics from July 2014 to June 2020 and currently serves as director of Log-Hub, a private supply chain solution and optimization company. Additionally, the board is bringing on Paul Svindland as lead independent director. Svindland was formerly the CEO of STG Logistics since February 2020, before moving into the chairman role this past April. With the changes, the board reduced its size to comprise eight directors, six of whom are independent. All directors have been appointed since January 2024, the same month Forward Air and Omni Logistics settled their respective litigation against one another and officially merged under one roof. Sign in to access your portfolio
Business Wire
18-06-2025
- Business
- Business Wire
Ancora Issues Statement of Support for Pitney Bowes
CLEVELAND--(BUSINESS WIRE)--Ancora Holdings Group, LLC (together with its affiliates, 'Ancora' or 'we') today issued the below statement following its decision to redeem its investment in the long-term special purpose vehicle managed by Hestia Capital Management LLC and, in turn, start directly holding its shares of Pitney Bowes Inc. (NYSE: PBI) ('Pitney Bowes' or the 'Company') due to the size of the position. Fredrick D. DiSanto, Chairman and Chief Executive Officer of Ancora Holdings Group LLC, and James Chadwick, President of Ancora Alternatives LLC, commented: 'We originally invested in Kurt Wolf's special purpose vehicle because we believed Kurt could be a catalyst of significant value creation at Pitney Bowes. More than two years later, Kurt has clearly been the driving force behind the Company's cost reductions, cash repatriation initiatives, debt reduction and the necessary divestiture of the Global Ecommerce unit. The excellent results speak for themselves. We look forward to remaining long term investors in Pitney Bowes and believe shareholders are well served by Kurt Wolf as the Company's Chief Executive Officer.' About Ancora Founded in 2003, Ancora Holdings Group, LLC offers integrated investment advisory, wealth management, retirement plan services and insurance solutions to individuals and institutions across the United States. The firm is a long-term supporter of union labor and has a history of working with union groups and public pension plans to deliver long-term value. Ancora's comprehensive service offering is complemented by a dedicated team that has the breadth of expertise and operational structure of a global institution, with the responsiveness and flexibility of a boutique firm. Ancora Alternatives is the alternative asset management division of Ancora Holdings Group, investing across three primary strategies: activism, multi-strategy and commodities. For more information about Ancora Alternatives, please visit
