On Monday afternoon, a Bloomberg article informed that Canadian Pacific Railway, the second-largest biggest railroad in Canada, was considering a takeover of Norfolk Southern Corp., a big-cap U.S. carrier.
The article assured that, in a move aimed at consolidating the North American industry, Canadian Pacific was raising financing and had “held early-stage merger talks with Norfolk Southern.”
However, the note added, “Discussions are preliminary and talks may not progress or lead to a deal,” sources familiar with the issue said. Representatives for both companies involved declined to comment on the issue.
Author Ed Hammond noted that the acquisition of Norfolk Southern, the second-largest railroad in the Eastern region of the U.S., “would revive Canadian Pacific’s effort to build a transcontinental carrier after talks with CSX Corp. failed last year.”
Hammond continued, “In floating the idea of a CSX tie-up, Canadian Pacific Chief Executive Officer Hunter Harrison upended the long-held view in the industry that it was fruitless to even discuss another merger because regulators would object.”
Disclosure: Javier Hasse holds no positions in any of the securities mentioned above. Image Credit: Public Domain© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.