CSX Surges After Report of Canadian Pacific Takeover Interest
CSX Corp. jumped as much as 8% after the close of trading in New York, following a report that Canadian Pacific Railway approached the U.S. railroad about a takeover in January and was rebuffed.
Shares rose to $25.60 in the latest trade at 6:22 p.m. in New York after climbing as high as $26.60, up from the closing price of $24.64. CSX has declined 5% this year through a March 1 close compared with a 3.2% drop for the Standard & Poor’s 500 Index.
Gary Sease, a spokesman for CSX, declined to comment on the March 1 report in the Wall Street Journal.
Marty Cej, a spokesman for Canadian Pacific, declined to comment beyond confirming that CEO Hunter Harrison said there would be benefits from a tie-up with CSX or the other major carrier in the eastern U.S., Norfolk Southern Corp.
Canadian Pacific made three offers last year to buy Norfolk Southern and all were rejected as “grossly inadequate” and carrying regulatory risk. Harrison has said a merger with an eastern U.S. railroad would create a transcontinental service that would be more efficient and reduce costs.
In 2014, Harrison held talks with CSX CEO Mike Ward, who batted down the idea of a merger.
