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Canadian Pacific revises buyout offer, increases pressure on rival railroad Norfolk Southern
OMAHA, Neb. – Canadian Pacific has revised its takeover bid for Norfolk Southern, and is trying to make a strong case for why combining the two major railroads makes sense.
The new offer includes $32.86 cash and 0.451 shares in the combined company that would own both railroads.
That includes less cash than the initial offer of $46.72 per share, but more equity than last month’s offer of 0.348 shares in the combined company.
The two railroads don’t agree on how to value the shares in the new company, and Norfolk Southern rejected the new offer even before Canadian Pacific executives held a conference call outlining the details.
The new bid also promises that Norfolk Southern shareholders could receive the cash next spring before regulators complete their review.
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