Norfolk Southern Corp.’s investors can win even if Canadian Pacific Railway Ltd.’s $28 billion takeover offer fails. “While I see the probability of a deal as extremely unlikely, I do see a reinvigorated Norfolk Southern management team as working to the benefit of its shareholders as hard, if not harder, than it ever has,” said Matt Troy, an analyst at Nomura Securities International. Norfolk Southern, the second-largest railroad in the eastern U.S., signaled it was inclined to reject the bid, calling it “low-premium, non-binding and highly conditional.” Yet the offer could stoke shareholder impatience with Norfolk Southern’s industry-worst operating efficiency and its slow reaction to...
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