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UPDATE 3-CP to seek shareholder support for Norfolk takeover talks

Published 2016-02-09, 07:01 p/m
© Reuters. UPDATE 3-CP to seek shareholder support for Norfolk takeover talks
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(Adds comments from Norfolk Southern (N:NSC), paragraphs 5, 6)
Feb 9 (Reuters) - Canadian Pacific Railway Ltd CP.TO said
on Tuesday it planned to seek support from Norfolk Southern
Corp's NSC.N shareholders to push the U.S. railroad's board to
engage in takeover talks.
The company said it intended to submit a resolution, which
would be put to vote at Norfolk Southern's annual shareholder
meeting this year.
"We are not asking NS shareholders to vote on the existing
proposal; we are simply asking them to vote in favor of having
their board talk to us," Canadian Pacific Chief Executive Hunter
Harrison said in a statement.
Norfolk Southern has repeatedly rejected Canadian Pacific's
takeover offers, hoping to persuade shareholders that it is
better off as a standalone company.
Further talks "are not in the best interests of NS
shareholders unless CP offers NS shareholders compelling value,"
Norfolk Southern said in a statement.
The company also said Canadian Pacific has not addressed the
concerns of Norfolk board.
Opposition against the deal, initially valued at about $28
billion when its was first announced last November, has been
mounting.
A number of industry groups, rail customers and a couple of
the unions representing workers at Norfolk Southern have come
out against the merger.
Canadian Pacific has been surprised by the force of the
opposition to the deal, which reduces the chances of a
successful hostile takeover, WSJ said.
The Wall Street Journal first reported Canadian Pacific's
plan to submit the resolution.

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