Norfolk To Canadian Pacific CEO: 'Your Latest Revised Proposal Is Grossly Inadequate'

on Wednesday that its Board of Directors officially rejected

's offer to acquire the company for $32.86 in cash and 0.451 shares of the newly combined entity. In a letter to Canadian Pacific's CEO E. Hunter Harrison, Norfolk's CEO Jim Squires said that the proposal is "grossly inadequate," and creates "substantial regulatory risks and uncertainties that are highly unlikely to be overcome." Squires continued that Canadian Pacific's offer is "not in the best interest" of the company and its shareholders. "You continue to publicly declare that we are not "engaging" or "meeting" with you," Squires also wrote. "There is no basis to meet until you both make a compelling offer and address the regulatory issues, which you have the ability to do by seeking a declaratory order. We also note your repeated public statements that you are not willing to increase your offer regardless of whether we were to meet." Shares of Norfolk were trading higher by 0.71 percent at $86.68 Wednesday morning while shares of Canadian Pacific were higher by 1.01 percent at $127.55 at the same time.