(Reuters) - Canadian Pacific Railway Ltd CP.TO has approached CSX Corp CSX.N about merging the two North American railroad operators, according to the Wall Street Journal.
The offer was made in the past week and was rebuffed, the newspaper said on Sunday, citing people briefed on the matter. It added that it was unclear if Canadian Pacific has shelved the plan.
Canadian Pacific spokesman Martin Cej and CSX spokeswoman Melanie Cost both told Reuters their companies do not comment on market rumors.
Canadian Pacific, Canada’s No. 2 railway by revenue, has a market value of about $32 billion, while Florida-based CSX, the No. 3 U.S. carrier, is worth about $30 billion, though it generates more revenue, the Journal said. Activist investor William Ackman is on Canadian Pacific’s board and his hedge fund has a big stake in the company.
Potential obstacles to a deal include obtaining consent from the U.S. Surface Transportation Board, which oversees railroads, as well as from U.S. national security officials, the paper said.
Reporting by John McCrank in New York; Editing by Eric Walsh