Rail operator Norfolk Southern rejects peer Canadian Pacific's bid

New York

CANADIAN Pacific has been rebuffed in an ambitious attempt to buy a large railroad operator, showing again the regulatory hurdles to rail-carrier consolidation.

Norfolk Southern said on Friday that its board had rejected Canadian Pacific's US$28 billion offer, which was made last month, saying that it undervalued Norfolk Southern and that the chance for achieving regulatory approval was too low.

Rail carriers must demonstrate to the Surface Transportation Board, part of the Department …