CP Says Disappointed With Norfolk Southern Response; To Review Strategic Option

(RTTNews) - Canadian Pacific (CP, CP.TO) said it is disappointed that Norfolk Southern Corp. (NSC) has rejected without engaging in a dialogue CP's enhanced offer of December 16 to create a truly transcontinental railroad to better serve customers and the economy.

Canadian Pacific noted that it remains confident that a Canadian Pacific - Norfolk Southern combination would secure regulatory approval as a seamless coast-to-coast single-haul service benefits shippers, the industry and the public, and would generate tremendous shareholder value.

It is apparent that neither the executive leadership at NS nor its board of directors are willing to sit down in an open and constructive dialogue about this transformational opportunity and that the interests of the NS board are not aligned with the best interests of NS shareholders. So, CP will review its strategic alternatives.

Earlier today, Norfolk Southern announced its board rejected Canadian Pacific's December 16, 2015 publicly disclosed, revised proposal to acquire the company for $32.86 in cash. The board of Norfolk Southern has unanimously determined that the revised proposal is grossly inadequate, creates substantial regulatory risks and uncertainties.

The Board of Norfolk Southern noted that Canadian Pacific has not addressed the significant regulatory issues that the company has previously identified.