Norfolk Southern: Canadian Pacific's Reduced Proposal More Uncertain And Risky

(RTTNews) - Norfolk Southern Corp. (NSC) confirmed it has received a revised, reduced proposal from Canadian Pacific (CP, CP.TO). Canadian Pacific's new proposal provides for a per share consideration of $32.86 in cash and a fixed exchange ratio of 0.451 shares in a new company that would own Canadian Pacific and Norfolk Southern, and is valued at $91.62.

"Canadian Pacific's revised, reduced proposal is even more uncertain and risky given the decrease in the cash consideration. The proposal is based on a voting trust structure that we reviewed and do not believe would be approved by the STB," said Chairman, President and CEO James Squires.