CP deflects reports of bid to buy NS

OREANDA-NEWS. November 11, 2015. Railroad Canadian Pacific (CP) today answered reports that it is considering an acquisition of Norfolk Southern (NS), by saying "there is no material news pending at this time."

It was reported that the Class I Canadian carrier was considering an acquisition of the eastern US carrier, but the companies have not confirmed that the talks are occurring.

"CP does not comment on market rumour and speculation," the company said.

A news report said CP is raising financing and is in the early stages of discussing a possible acquisition. Stock prices surged in the wake of the report.

CP in 2014 had pursed a merger with NS' rival, eastern US carrier CSX, but ended talks in October 2014, saying regulatory concerns were a major deterrent. CP said at the time that rail company mergers would help ease service problems across the network.