UPDATE: Norfolk Southern Corporation says its board of directors will “carefully consider” the latest proposal from Canadian Pacific “with the assistance of its financial, legal and regulatory advisors.” Norfolk Southern has rejected CP’s previous offers as “grossly inadequate” and unlikely to pass regulatory review.
OMAHA, Neb. (AP) _ Canadian Pacific is increasing its offer to buy Norfolk Southern railroad by adding an additional payment that would vary depending on the stock price of the new company. Canadian Pacific CEO Hunter Harrison said Wednesday that his company remains committed to the deal despite Norfolk Southern’s opposition. He wants shareholders of the Norfolk, Virginia, railroad to decide whether to pursue it. Canadian Pacific says its new offer could add as much as $3.4 billion to its previous offer that it estimated was worth between $37 billion and $42 billion. That value is based on the projected value of stock in a new company that would own both railroads. Norfolk Southern says the previous offer was worth roughly $27 billion based on current share prices. In the latest offer, Canadian Pacific is offering to pay Norfolk Southern investors up to roughly $11.305 per share more if shares of the combined company are worth less than $175 in October 2017. Norfolk Southern didn’t have an immediate comment.