The Benefits And Potential Stumbling Blocks Of The Proposed Canadian Pacific-Norfolk Southern Merger

Norfolk Southern Corporation has announced the receipt of a takeover offer from Canadian Pacific Railway Company. Canadian Pacific is offering Norfolk Southern shareholders $46.72 in cash in addition to 0.348 shares of Canadian Pacific for every share of Norfolk Southern, which represents a premium of around 10% based on closing prices on November 17. Norfolk's response to the offer has been tepid at best, with the company terming Canadian Pacific's offer 'unsolicited, low-premium, non-binding, ...