CP Set to End Norfolk Pursuit If Resolution Fails, Harrison SaysBy
Canadian Pacific Railway Ltd. is ready to end efforts to buy Norfolk Southern Corp. if shareholders of the U.S. railroad reject a resolution calling for merger talks, the head of the Calgary-based company said.
Asked by an analyst at a BB&T Corp. conference if a defeat of the resolution would mark the end of efforts to acquire Norfolk Southern, Canadian Pacific Chief Executive Officer Hunter Harrison said, “Yes, I think so.”
“We’re making preparations that if we’re not successful in entering a dialogue, that we’re going to go back and focus on running” the railroad, Harrison said, according to a recording of the event. “And making it even more successful and having a good year and rewarding shareholders.”
Canada’s second-largest railroad plans to submit a resolution to Norfolk Southern investors requesting that the U.S. company’s board “engage in good faith discussions,” Canadian Pacific said in a statement Tuesday. Norfolk Southern has rejected several approaches, including one in December that valued the U.S. carrier at $27 billion.
Canadian Pacific won’t present an alternative slate of directors at Norfolk Southern’s 2016 annual meeting.
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