Norfolk Southern gives thumbs down to $28.4B bid from Canadian Pacific

|About: Canadian Pacific Railway ... (CP)|By:, SA News Editor

Norfolk Southern (NYSE:NSC) will "carefully evaluate" Canadian Pacific Railway's (NYSE:CP) $28.4B acquisition offer, but has described the bid as "low-premium" and warned that it would face significant regulatory obstacles.

Canadian Pacific is more optimistic and believes that authorities would approve the merger, which it argues will improve customer service and facilitate competitive rates for shippers.

Canadian Pacific is offering around $94.94 in cash and stock, or a 9% premium to Norfolk Southern's closing price of $87 yesterday.

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