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%.