Canadian Pacific says Norfolk Southern wrong about merger

FILE - In this May 23, 2012, file photo, surveyors work next to Canadian Pacific trains in Toronto. Canadian Pacific has revised its takeover bid for Norfolk Southern, saying that it should ease fears that the railroad deal would be shot down by regulators. Norfolk Southern Corp. rejected the initial bid, saying it was grossly inadequate and risky. It said Tuesday, Dec. 8, 2015, that the new offer was more uncertain and risky, in part because there was less cash consideration. (AP Photo/The Canadian Press, Nathan Denette, File)

OMAHA, Neb. (AP) — Canadian Pacific says one of the main reasons Norfolk Southern opposes merging the two railroads is based on flawed assumptions.

Canadian Pacific issued a report Tuesday explaining why it believes regulators are likely to approve a merger of the two railroads.

Norfolk Southern has already rejected two different cash and stock offers from the Canadian railroad because it believes regulators wouldn’t approve the deal and investors would be better off if the Norfolk, Virginia, railroad remained independent. It has also criticized the offers as inadequate.

Canadian Pacific says that Norfolk Southern is wrong to think the Surface Transportation Board wouldn’t approve the structure of a deal that calls for putting one railroad into a voting trust during regulators’ review.

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