Norfolk Southern Rejects $28bn Canadian Pacific Bid

Norfolk Southern has rejected a $28 billion from Canadian Pacific it emerged today. According to the company, Canadian Pacific’s offer of $46.72 in cash and 0.348 in stock for a total of $97 per share, “is grossly inadequate, creates substantial regulatory risks and uncertainties that are highly unlikely to be overcome, and is not in the best interest of the company and its shareholders,” according to a statement issued by Norfolk Southern today.

“We believe Norfolk Southern and Canadian Pacific is a poor combination,” Norfolk Southern chief executive officer Jim Squires said on a conference call on Friday morning. Jim Squires went on to label the offer from Canadian Pacific “opportunistic” and an attempt to take advantage of the drop in the...