CSX Corp. jumped around 8 per cent after the close of trading in New York, carrying out a report that Canadian Pacific Railway Ltd. approached the U.S. railroad in regards to a takeover in January and was rebuffed.
Shares rose to US$25.60 within the latest trade at 6:22 p.m. in Ny after climbing as high as US$26.60, up from the closing price of US$24.64. CSX has declined 5 percent this season through Tuesday’s close in contrast to a 3.2 percent drop for that Standard & Poor’s 500 Index.
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Gary Sease, a spokesman for CSX, declined to discuss Tuesday’s report in the Wall Street Journal. Marty Cej, a spokesman for Canadian Pacific, declined to comment beyond confirming that Chief Executive Officer Hunter Harrison said there’d be advantages of a tie-up with CSX or another major carrier in the eastern U.S., Norfolk Southern Corp.
Canadian Pacific made three offers this past year to buy Norfolk Southern and all sorts of were rejected as “grossly inadequate” and carrying regulatory risk. Harrison has stated a merger with an eastern U.S. railroad would create a transcontinental service that would be more efficient and lower costs.
In 2014, Harrison held talks with CSX CEO Mike Ward, who batted down the idea of a merger.
Bloomberg.com
