Canadian Pacific ends bid for Norfolk Southern
Associated Press – NEW YORK (AP) - Canadian Pacific said it is ending its nearly $30 billion takeover bid for rival railroad Norfolk Southern.
Norfolk Southern had rejected Canadian Pacific's bids because it questioned whether regulators would approve it.
A deal would have expanded Canadian Pacific's rail network across the U.S. Calgary, Canada-based Canadian Pacific operates railroads in Canada and parts of the U.S. Midwest and South, while Norfolk Southern of Norfolk, Virginia operates railroads along the East Coast, Midwest and South.
Shares of Norfolk Southern Corp. slipped nearly 2 percent in trading before the stock market open Monday. Shares of Canadian Pacific Railway Ltd. were unchanged.
Norfolk Southern released this statement regarding Canadian Pacific's withdrawal:
Norfolk Southern's board and management team are committed to enhancing value for shareholders. Since the company's new management team was appointed, Norfolk Southern has been focused on implementing a strategic plan to streamline operations, reduce expenses and maintain superior customer service levels.
The Norfolk Southern team has made significant progress and is on track to achieve annual productivity savings of more than $650 million and an operating ratio below 65 percent by 2020. We are confident the continued execution of our plan will deliver superior value to all of the company's stakeholders by best positioning Norfolk Southern to succeed.
We thank our shareholders for their input and support throughout this process and our employees for their hard work and dedication to strengthening Norfolk Southern as a critical component of the nation's transportation infrastructure.
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