(Adds CP response)
Dec 23 (Reuters) - U.S. railroad operator Norfolk Southern Corp rejected Canadian Pacific Railway Ltd’s revised bid, reiterating that it was “grossly inadequate” and created “substantial regulatory risks and uncertainties”.
Canadian Pacific offered on Dec. 16 an additional 0.451 of a Contingent Value Right (CVR) in a new holding company for the Canadian railroad operator and Norfolk Southern that could be converted to cash.
The CVR was offered along with $32.86 in cash and 0.451 of a share in a new holding company that would own both Norfolk Southern and Canadian Pacific.
Canadian Pacific said late on Wednesday it was disappointed that Norfolk Southern rejected its latest offer without engaging in a dialogue.
The company said it remained confident of securing regulatory approval for a combination between the companies. (Reporting by Amrutha Gayathri and Darshana Sankararaman in Bengaluru)