Norfolk Rebuff Leaves Canadian Pacific to Decide on Fight

  • CP Rail is unlikely to increase bid for Norfolk, analyst says
  • Turn-down is a formality after public criticism of proposal

CP Rail Unlikely to Increase Bid for Norfolk: Analyst

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Norfolk Southern Corp. rejected a sweetened bid from Canadian Pacific Railway Ltd., moving the cross-border railroad takeover effort a step closer to a proxy fight.

The decision, a formality after Norfolk Southern’s public coolness to the plan, leaves Canadian Pacific Chief Executive Officer Hunter Harrison with a choice: abandon his quest to create a transcontinental carrier or go directly to the U.S. railroad’s investors, as he has said he may do. Canadian Pacific said it will weigh “strategic alternatives” without giving details.