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Justice Department urges rejection of CP, Norfolk Southern voting trust

Staff writer |
The U.S. Justice Department called on a regulator to reject a voting trust Canadian Pacific (CP) has proposed as part of its takeover bid for Norfolk Southern.

The U.S. Justice Department says it risked harming competition in the rail industry.

The Justice Department said in a statement that it had told the Surface Transportation Board, which is reviewing the proposed merger, that the voting trust would "fail to preserve the independence of the merging railroads during the pendency of the transaction’s regulatory review and would risk harm to current and future competition."

Canadian Pacific Railway said in February will seek an approval from the U.S. Surface Transportation Board (STB) of the viability of a deal structure it intends to use in its takeover of Norfolk Southern. â– 

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