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Ackman Makes More Noise About Rail Consolidation

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More consolidation is coming for the rail industry, according to activist investor Bill Ackman, who has previously made similar assertions since his Pershing Square hedge fund won control of Canadian Pacific Railway Limited (USA) (NYSE: CP) in 2012.

Ackman, in an interview on Bloomberg TV Wednesday, also said lower oil prices will "have some effect on growth" for Canadian Pacific.

Up to 10 percent of Canadian Pacific's revenue is reportedly dependent on the Canadian oil industry. Its shares are down nearly 8 percent in the past three months.

Ackman is a director of Canadian Pacific, which sought unsuccessfully earlier this year to acquire CSX Corporation (NYSE: CSX), operator of a major rail network serving the eastern United States.

At an investors' conference last month, Ackman implied that Canadian Pacific might turn its sights on acquiring CSX rival Norfolk Southern Corp. (NYSE: NSC), according to a report by Bloomberg.

Norfolk Southern traded recently at $107.74, up 2.3 percent.

Ackman said Wednesday that Canadian Pacific will grow at a rapid rate and implied that its acquisition of a competitor would create "enormous value."

Posted-In: Bill Ackman BloombergNews Intraday Update Trading Ideas

 

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