November 16, 2015 / 7:09 PM / 3 years ago

BUZZ-Norfolk Southern shares fall, merger hopes slip

** Norfolk Southern shares fall as much as 2.3 pct on Monday on investor impatience for a deal after reports of a potential merger with Canadian Pacific Railway Ltd

** Railroad Norfolk Southern shares rose 11.4 pct last week on reports that its Canadian counterpart was exploring a potential acquisition of NSC

** Norfolk Southern shares regained some ground in the afternoon but was still down 1.3 pct at $87.78 in afternoon and was the worst performer in the U.S. sector

** The Wall Street Journal however, reported Friday that the companies’ CEOs met that day but that Canadian Pacific CEO Hunter Harrison’s proposal was met with a chilly reception

** Talks between the Canadian company had CSX Corp had broken down in 2014.

** Bernstein analyst David Vernon cited concern among investors on Monday that a deal hasn’t been announced and that NSC “may end up back where we were with CSX - lots of excitement but no agreement.”

** U.S. railroad stocks have been slammed this year on weakness in commodities such as coal

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