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Wednesday, October 15, 2014

CSX CEO: Major U.S. rail mergers could disrupt service, (NYSE: CSX)

Further consolidation of major U.S. railroads could lead to service disruptions rather than improvements in U.S. rail freight congestion, the chief executive of CSX Corp said in a conference call with analysts on Wednesday."We might actually see a step back in service," Michael Ward said when asked whether consolidation would improve rail capacity.Ward's comments came after the Wall Street Journal reported on Sunday that Canadian Pacific Railway, the No. 2 Canadian carrier, had made a bid for CSX, the No. 3 U.S. railroad, but had been rebuffed. Both companies failed to comment on the report.In an interview with Reuters CSX's CEO said he expected push back from some customers about freight price increases next year, and said new reporting requirements issued by the top U.S. rail regulator last week may take time to implement.

CSX Corporation (CSX), together with its subsidiaries, is a transportation supplier. Shares of CSX fell by 2.97% or $-0.97/share to $31.64. In the past year, the shares have traded as low as $25.28 and as high as $34.09. On average, 6530400 shares of CSX exchange hands on a given day and today's volume is recorded at 7999600.