Norfolk Southern Rejects Canadian Pacific's Takeover Bid - Quick Facts

(RTTNews) - Norfolk Southern Corp. (NSC) said its board of directors has unanimously rejected Canadian Pacific's (CP, CP.TO) previously announced unsolicited, low-premium, non-binding, highly conditional indication of interest to acquire the company.

Canadian Pacific had offered to acquire Norfolk Southern for $46.72 in cash and a fixed exchange ratio of 0.348 shares in a new company that would own Canadian Pacific and Norfolk Southern.

Norfolk Southern's board, after a comprehensive review, concluded that the indication of interest is grossly inadequate. The board also determined that the offer creates substantial regulatory risks and uncertainties that are highly unlikely to be overcome, and is not in the best interest of the company and its shareholders.

"We believe in our ability to generate greater shareholder value through execution of our strategy - delivering efficient and superior service to build a more profitable franchise based on price and volume growth, implementing efficiency measures, and increasing returns on capital to strengthen our financial performance, all while maintaining our disciplined capital return strategy," Norfolk Southern's Chairman, President and CEO James Squires said.