REPORT: Canadian Pacific wants to buy Norfolk Southern

Canadian Royal Pacific
Canadian Pacific is reportedly looking into a Norfolk Southern takeover. Train Chartering & Private Rail Cars

Canadian Pacific Railway is looking into a potential takeover of US counterpart Norfolk Southern, Bloomberg’s Ed Hammond and Jeffrey McCracken report, citing people familiar with the matter.

CP is Canada’s second-largest railroad and made headlines in 2011 when activist investor Bill Ackman acquired about 14% of its stock and uprooted the company’s board and management.

Ackman’s Pershing Square is still the largest shareholder in Canadian Pacific.

Now, CP is in early-stage talks with Norfolk, which is the second-largest railroad in the eastern US and valued around $US25 billion, and is in the process of raising financing, according to the report.

Trading in Norfolk Southern was temporarily halted on Monday. Shares have since jumped about 12%.

Read the full Bloomberg report here»

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