Canadian railway CEO expects answer to merger idea

December 3, 2015

By JOSH FUNK The Associated Press, in The Salt Lake Tribune

Canadian Pacific’s CEO said Wednesday he expects to get a formal response soon from Norfolk Southern about whether the Virginia-based railroad wants to pursue a proposed merger.CP_Logo_RGB

Hunter Harrison told an investor conference that he believes there’s a compelling case for combining the two railroads.

Norfolk Southern has offered only a lukewarm statement in response to Canadian Pacific’s initial offer last month of $46.72 cash and 0.348 shares in the combined company.

Harrison reiterated that the case for a combination includes the potential for $1.8 billion in annual cost savings. He was speaking at a Credit Suisse conference.Website Insert Gathering of Professionals 1 copy

Norfolk Southern spokeswoman Susan Terpay declined to comment Wednesday.

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