Rail operator Norfolk again rebuffs Canadian Pacific's revised offer

Montreal

CANADIAN Pacific Railway (CP) on Tuesday revised its bid to buy US railroad operator Norfolk Southern Corp, less than a week after its prior US$28.4 billion proposal was rejected, but the new offer was promptly rejected again.

Calgary-based CP said that it was now offering US$32.86 in cash and 0.451 of a share in a new holding company that would own both Norfolk Southern and Canadian Pacific. To alleviate regulatory concerns, CP said that it was prepared to close the transaction using a voting trust.