Canadian Manufacturing

Norfolk Southern rejects second acquisition offer from CP Rail

Norfolk Southern said the new bid is valued at less than the previous one; CP said it addresses regulatory concerns



CALGARY—Canadian Pacific Railway has revised its offer to acquire Norfolk Southern, but the Virginia-based railway has already rejected it.

CP Rail said in a letter to Norfolk Southern’s CEO that its amended bid is valued at $91.62 per share based on its Dec. 7 closing price.

That includes $32.86 in cash and a fixed exchange ratio of 0.451 shares in the combined company.

The previous offer put forth last month was valued at $92.06 per share and included $46.72 in cash and 0.348 shares in the new railroad.

Calgary-based CP Rail said the revised bid would ease any regulatory concerns over the proposed merger.

But Norfolk Southern said in a statement that the new bid is valued at less than the previous one, which it already concluded was “grossly inadequate.”

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