Report : Canadian Pacific Railway Explores Norfolk Southern Takeover

(RTTNews) - Canadian Pacific Railway Limited (CP, CP.TO) is exploring a takeover of U.S. carrier Norfolk Southern Corp. (NSC) in a fresh attempt to consolidate the North American industry, Bloomberg reported, citing people familiar with the matter.

NSC closed Monday trading at $88.62, up $8.75 or 10.96%. However, in after hours, the stock dropped $1.02 or 1.15%.

CP closed Monday trading at $142.18, up $7.87 or 5.86%. In after hours, the stock further gained $0.32 or 0.23%.

Canadian Pacific is raising financing and has held early-stage merger talks with Norfolk Southern, which is valued at about $24 billion. Discussions are preliminary and talks may not progress or lead to a deal, the report said.

Responding to recent market activity, Canadian Pacific Railway said that there was no material news pending at this time. CP did not comment on market rumour and speculation.