TRANSPORTATION

Exec Says Rail Deal Terms May Be Unacceptable: Stipulations by federal regulators over the proposed merger of Union Pacific Railroad and Southern Pacific Rail Corp. could make the move unacceptable for Omaha-based Union Pacific, President and Chief Executive Ron Burns said. The company might call off its merger plans if, for instance, regulators force the company to sell off rail corridors through the center of the nation. “It’s a major opportunity for us to blend two railroads together that have distinctive features,” Burns said in response to criticism directed at the deal. But without certain segments of the combined system, Burns said, most of the economic benefits from the combination would be lost. The $4-billion merger would create the world’s largest railroad.