Brooke Sutherland, Columnist

Ackman's Railroad Ties

Canadian Pacific's revised bid for Norfolk Southern requires a leap of faith.

December 8, 2015 at 6:05 PM UTC

Brooke Sutherland is Bloomberg News' Boston bureau chief and writes the Industrial Strength Newsletter. She was previously a Bloomberg Opinion columnist covering deals and industrial companies and an M&A reporter for Bloomberg News.

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Canadian Pacific sure knows how to leave investors wanting more.

After an underwhelming bid last month failed to entice Norfolk Southern to entertain a merger, the railroad operator and its No. 1 fan Bill Ackman were back with a revised proposal on Tuesday. Canadian Pacific is now offering Norfolk Southern holders $32.86 in cash and 0.451 of a share in a new combined company. That's less cash than it was previously proposing, but more equity. How much the bid is actually worth depends on who you ask.