Norfolk Southern Reveals 'low-premium' Bid From Canadian Pacific

Norfolk Southern Corp. said late Tuesday it will consider a bid from Canadian Pacific Railway Ltd. but didn't sound too enthusiastic about the offer. Canadian Pacific is offering $46.72 in cash and 0.348 of Canadian Pacific shares for each Norfolk Southern share. With Tuesday's close that works out to about $94.95 a share for Norfolk Southern, less than a 10% premium to the stock's $86.97 close. Norfolk Southern called the offer "low-premium" and said that consolidation of the two railroads in North America would face "significant regulatory hurdles." Earlier Tuesday, Canadian Pacific had described its undisclosed bid for Norfolk Southern as including "a sizable premium."