Canadian Pacific Made Merger Overtures To CSX: WSJ

(RTTNews) - Canadian Pacific Railway Ltd (CP, CP.TO) has approached CSX Corp (CSX) about merging the two railroad operators, the Wall Street Journal said Sunday, quoting people familiar with the matter.

The merger offer was made last week and was rebuffed, the newspaper said, adding that it isn't known if the effort has been shelved.

A deal between the two of North America's largest railroad operators would lead to the creation of an industry leader with combined market value of about $62 billion and combined annual revenue of about $18 billion. Canadian Pacific, which is Canada's second-largest railroad operator, has a market value of about $32 billion.

But a potential hurdle to a deal could be regulatory opposition from the U.S. Surface Transportation Board, the newspaper said.