CHARLESTON, W.Va. — West Virginia’s congressional delegation and others are speaking out against Canadian Pacific’s hostile takeover bid for the Norfolk Southern railroad because they fear job losses and harm to a Wayne County intermodal facility project that could be undercut just as it is getting started.
At a press conference Tuesday in Charleston, Sen. Joe Manchin, D-W.Va., announced he is calling for an immediate Senate investigation into Canadian Pacific’s bid to acquire Norfolk Southern. He said the plan is not an ordinary merger, but rather one that will profit “Wall Street titan” and hedge fund billionaire Bill Ackman, whose company Pershing Square Capital Management acquired 14.2 percent of Canadian Pacific’s shares in 2011.
Ackman then won a proxy battle that ultimately earned him more board members, a new CEO in Hunter Harrison, and a new direction for the Canadian railroad. Since 2011, Canadian Pacific has cut 6,000 jobs – or one-third of its workforce – including 1,800 jobs in 2015. This past week, Canadian Pacific announced plans to cut 1,000 more jobs – or 12 percent of its workforce – in 2016.
