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Nov 18 (Reuters) - Canadian Pacific Railway Ltd said its proposed $28.4 billion acquisition of U.S. railroad operator Norfolk Southern Corp will help the combined company save at least $1.8 billion annually.
The combined company will also have substantial tax benefits, Canadian Pacific said in a proposal letter it sent to Norfolk on Tuesday.
Canadian Pacific made the letter public on Wednesday after Norfolk rejected the offer, calling it "low-premium" and warning of significant regulatory hurdles. (Reporting by Amrutha Gayathri in Bengaluru; Editing by Savio D'Souza)