Court upholds CP's DM&E railroad buy
Here's some from an article by William McQuillen for Bloomberg about the legal appeal of Canadian Pacific picking up DM&E railroad:
Canadian Pacific Railway Ltd.’s acquisition of the Dakota, Minnesota & Eastern Railroad Corp. in 2008 was upheld by an appeals court, which rejected challenges by the Sierra Club and Chicago’s commuter rail agency.
The U.S. Court of Appeals for the District of Columbia today said the Sierra Club had no stake in the matter that would allow it to sue, and rebuffed claims by the agency, known as Metra, that the Surface Transportation Board abused its discretion in approving the purchase.
Both plaintiffs claimed the board’s approval was premature. Canada’s second-largest railroad won U.S. regulatory approval for the deal in September 2008.
The company paid $1.48 billion for DM&E to expand its access to ethanol and coal markets in the U.S. Midwest.
Canadian Pacific, based in Calgary, rose 80 cents to $58.85 at 11:18 a.m. in New York Stock Exchange composite trading.