November 18, 2015 / 3:57 PM / 2 years ago

BUZZ-U.S. railroad sector speeds up on CP Norfolk Southern offer details

2 Min Read

** Norfolk Southern shares rise more than 7 pct Wednesday after Canadian Pacific Railway Ltd announced details of a $28.4 bln bid for the railroad, with news pulling up battered U.S. railroad and rail equipment sectors

** NSC shares touch highest level since June 23 in heavy trading even after it criticized the offer's "low premium", warned of significant regulatory hurdles

** Stock had fallen in the previous two sessions as investors doubted a deal would come together. It jumped almost 11 pct Nov. 9 also on deal speculation

** Dow Jones U.S. railroads index up 3.3 pct, on track for best day in 2 mths. Index down 24 pct for 2015

** CSX Corp rises 3.7 pct, Genesee & Wyoming shares up 2.7 pct, Kansas City Southern up 2.6 pct, Union Pacific rises 2 pct

** U.S.-listed Canadian Pacific shares up 5.1 pct after co said deal could save it at least $1.8 bln annually. Its largest shareholder is William Ackman's activist hedge fund Pershing Square Capital Management LP

** Rail equipment stocks also rise: Greenbrier Co shares up 3 pct, American Railcar shares up 1.8 pct, Trinity Industries up 2.2 pct, FreightCar America shares up 2.9 pct

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