Canadian Pacific Shares Rally After Efforts To Merge With Norfolk Terminated
Shares of Canadian Pacific Railway Limited (NYSE: CP) were trading higher by nearly 4 percent Monday morning after the company confirmed in a press release it will no longer pursue its previously planned acquisition of Norfolk Southern Corp. (NYSE: NSC)
Canadian Pacific noted it has also withdrawn a resolution asking Norfolk Southern's shareholders to vote in favor of a good-faith negotiation between the companies. The company also affirmed no further financial offers or overtures will be presented to Norfolk Southern's Board of Directors at this time.
Shares of Norfolk Southern were trading lower by more than 3.5 percent.
Now that it will no longer pursue M&A activity, Canadian Pacific said it will continue focusing on "providing the best service, controlling costs, optimizing assets, operating safely and developing the best team of railroaders in the industry."
"We have long recognized that consolidation is necessary for the North American rail industry to meet the demands of a growing economy, but with no clear path to a friendly merger at this time, we will turn all of our focus and energy to serving our customers and creating long term value for CP shareholders," said CP CEO E. Hunter Harrison.
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