Of course, much the same could be said about NS's David Goode. That means there won't be a lot of savings, if any, from eliminating duplicate facilities. Oh, there will be some significant reductions of administrative staffs and perhaps a maintenance facility or two, but nothing like we saw in some earlier mergers. Because marketing alliances only work when there is excess capacity. Once capacity tightens, each partner in an alliance has all the reason in the world to optimize his network and not worry about the alliance.
Age is another intangible that goes into merger considerations.
It is a lot easier for a chief executive nearing retirement age to negotiate a lucrative golden parachute deal and leave a couple of years earlier than scheduled, than if the CEO is right in the prime of his executive life. The Journal of Commerce. All rights reserved.