Canadian Pacific Willing to Boost Offer on Norfolk Merger

How a Norfolk Southern Deal Will Help Canadian Pacific

Canadian Pacific Railway Ltd. is willing to sweeten its $28 billion proposal to merge with Norfolk Southern Corp., Chief Executive Officer Hunter Harrison said in a Bloomberg Television interview.

While not giving an amount the deal could be increased, Harrison said Canadian Pacific is seeking to preserve its investment-grade rating. “If that gives you some form of cap, so be it,” he said. 

Canadian Pacific plans to send an e-mail today to Norfolk management to request more talks, said Harrison, who met only once with Norfolk Southern CEO Jim Squires last week to discuss the proposal. A deal could take two years to finalize, Harrison said.

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