CP’s Harrison Says `Time to Talk Turkey’ With NS on Deal

December 14, 2015

By Frederic Tomesco, Bloomberg Business

Hunter Harrison, the chief executive officer of Canadian Pacific Railway Ltd., said a proxy fight appears likely over his company’s takeover bid for Norfolk Southern Corp., which rejected the latest offer.Website Insert Keep Your Money In-State copy

“Now it’s time to talk turkey,” Harrison said in an interview with Erik Schatzker of Bloomberg Television. “They’re going to have to talk to us, or we’re going to have to take another tactic.” Since Norfolk Southern hasn’t agreed to discuss the proposal, a proxy battle “sure seems” likely, Harrison said in the interview broadcast Monday from his horse farm in Florida.

In a regulatory filing Monday, Norfolk Southern said the revised proposal “continues to be grossly inadequate, creates substantial regulatory risks and uncertainties that are highly unlikely to be overcome, and is not in the best interest of the company and its shareholders.”

 Harrison said that while there is only limited room to adjust the bid, a different instrument beyond the cash and stock offer could allow Canadian Pacific to “sweeten the pot.” He suggested a contingent value right, a tool that gives holders of an acquired company additional benefits if a specified event occurs, subject to an expiration date.

Click here to read the full story from Bloomberg Business.

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