CP/NS takeover details from Norfolk Southern’s hometown newspaper

November 10, 2015

NORFOLK – Norfolk Southern Corp. is in the cross hairs of Calgary-based Canadian Pacific Railway Ltd., which is exploring the possibility of taking it over, according to a report by Bloomberg News.Website Insert Perfect Answer copy

The Canadian railroad, the second-largest in that country, has already been working on financing for a possible deal and has been in “early-stage merger talks” with Norfolk Southern, which is valued at about $24 billion, the report stated, citing “people familiar with the matter.”

The Norfolk-based railroad declined to address the report.

“We don’t comment on rumors,” said Susan Terpay, a Norfolk Southern spokeswoman.

Canadian Pacific did the same: “CP does not comment on market rumour and speculation,” said spokesman Martin Cej in an email.

The report comes just a little more than a year after Canadian Pacific made a similar move to merge with Florida-based CSX Corp., Norfolk Southern’s rival. News of the end of that round of merger talks came in late October 2014, about a week after reports began to circulate.

Norfolk Southern has about 30,000 employees, more than 1,150 of those in Hampton Roads. It is the second-largest railroad on the East Coast; CSX is No. 1. Norfolk Southern is one of three Fortune 500 companies headquartered in the region; the others are Chesapeake-based Dollar Tree and Newport News-based Huntington Ingalls Industries Inc .

A year ago today, Norfolk Southern’s stock closed at a record high, within days of media reports that it might be next on Canadian Pacific’s list.

In an October 2014 teleconference with analysts, Wick Moorman, then-chairman and CEO of Norfolk Southern, said “a major railroad merger is not a good idea,” when asked about the idea of rail combinations.

Virginian-Pilot reporter Robert McCabe has the full story by clicking here.

 

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