Canadian Pacific bids for railroad rival Norfolk Southern
Canadian Pacific says it wants to buy Norfolk Southern to create a much larger transcontinental railroad.
The company did not disclose the price Tuesday but said the offer includes a "sizable premium in cash and stock" to Norfolk shareholders. A Norfolk Southern representative could not be reached immediately.
Canadian Pacific operates in Canada and the United States. It would significantly expand its reach by buying Norfolk, Virginia-based Norfolk Southern, which operates 20,000 route miles in 22 states and the District of Columbia.
Canadian Pacific says the combined company would have the potential for faster profit growth than either could achieve alone.
Shares of Norfolk Southern are up 6.1 percent to $92.23 in extended trading. Canadian Pacific Railway Ltd. shares are unchanged.