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'Ackman's Train' Waiting Too Long At Norfolk Southern

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Canadian Pacific Railway Limited (NYSE: CP)'s pursuit of Norfolk Southern Corp. (NYSE: NSC) is in "limbo" and it may be "time to move on," Bloomberg's Brooke Sutherland opined in an article on Thursday.

Canadian Pacific Railway, backed by Bill Ackman, has been actively pursuing an acquisition of Norfolk Southern but said on Tuesday it will no longer push its own slate of candidates onto Norfolk's Board of Directors.

Sutherland noted that Canadian Pacific has shown no indication that it will raise its most recent acquisition offer to acquire Norfolk. On the other hand, the company does plan on submitting a resolution for Norfolk's investors to vote on at the 2016 meeting to engage in "good faith discussions" with Canadian Pacific.

"This makes sense," Sutherland wrote. "Canadian Pacific has said all along it started this whole takeover saga in part because Norfolk Southern shareholders asked it to; now it would like them to step up and say so publicly."

Sutherland added that if Norfolk investors aren't interested in pursuing the "good faith discussions" then it could represent the "turning point" in which Canadian Pacific will call off its acquisition attempts.

 

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Posted-In: Bill Ackman Bloomberg Brooke Sutherland canadian pacific CNBC NorfolkAnalyst Color Media

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