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Norfolk rebuff of sweetened deal has CP talking of hostile takeover
CANADIAN PACIFIC (CP) chief executive Hunter Harrison, 71, said he believes a proxy fight is likely if the Norfolk Southern Railway's (NS) management and board continue to refuse to discuss a takeover.
What CP implies is bypassing company management and going directly to shareholders with an offer to buy the company in a hostile takeover.
"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," said a CP statement.
The pursuit of Norfolk Southern was the result of investors urging Canadian Pacific to pursue a merger and apply its efficiency gains to another railway, said Mr Harrison.
Canadian Pacific said its latest proposal adds an additional payout of as much as US$3.4 billion to its bid. The rest of the new offer was similar to a revised plan for $32.86 in cash and 0.451 share in the combined company.
NS management calls the offer "grossly inadequate". Said Norfolk Southern CEO Jim Squires: "You continue to publicly declare that we are not ˉengaging' or ˉmeeting' with you. But there is no basis to meet until you make a compelling offer."
What CP implies is bypassing company management and going directly to shareholders with an offer to buy the company in a hostile takeover.
"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," said a CP statement.
The pursuit of Norfolk Southern was the result of investors urging Canadian Pacific to pursue a merger and apply its efficiency gains to another railway, said Mr Harrison.
Canadian Pacific said its latest proposal adds an additional payout of as much as US$3.4 billion to its bid. The rest of the new offer was similar to a revised plan for $32.86 in cash and 0.451 share in the combined company.
NS management calls the offer "grossly inadequate". Said Norfolk Southern CEO Jim Squires: "You continue to publicly declare that we are not ˉengaging' or ˉmeeting' with you. But there is no basis to meet until you make a compelling offer."
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