CP Approached CSX About a Takeover

March 2, 2016

By Dana Mattioli, Jacquie McNish and Dana Cimilluca, Dow Jones Newswire on NASDAQ

Canadian Pacific Railway Ltd., which is pressing an unwanted takeover bid for Norfolk Southern Corp., recently revived a $20 billion-plus effort to combined with CSX Corp. in the latest sign of its eagerness to bring consolidation to the industry.Website Insert Start Here copy

Canadian Pacific made a fresh approach to CSX in January, according to people familiar with the matter and Canadian Pacific Chief Executive Hunter Harrison. Though the approach was rebuffed, Canadian Pacific remains interested, they said.

“We’ve said all along that if we looked at the synergies between the two eastern carriers, right now both of them would work for us,” he said.

It isn’t clear why CSX said no. Shares of the Jacksonville, Fla.-based company, which is working with advisers, rose 2% to $24.64 while Canadian Pacific gained 1.5%, to $122.96, both in 4 p.m. trading on Tuesday. CSX rose 5% in late trading after The Wall Street Journal’s report of the approach.

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