Canadian Pacific Railway is looking into a potential takeover of US counterpart Norfolk Southern, Bloomberg's Ed Hammond and Jeffrey McCracken report, citing people familiar with the matter.
CP is Canada's second-largest railroad and made headlines in 2011 and 2012 when activist investor Bill Ackman acquired about 14% of its stock and uprooted the company's board and management.
Ackman's Pershing Square is still the largest shareholder in Canadian Pacific.
Last year, CP tried to merge with another US railway, CSX Corp, but talks failed.
Now, the Canadian company is in early-stage talks with Norfolk, which is the second-largest railroad in the eastern US and valued around $25 billion, according to the Bloomberg report.
CP is reportedly in the process of raising financing.
Trading in Norfolk Southern was temporarily halted on Monday. Shares have since jumped around 12%.
A spokesperson for Norfolk Southern said the company "doesn't comment about market rumors."
In a statement, Canadian Pacific said: "At the request of IIROC, on behalf of the Toronto Stock Exchange, Canadian Pacific Railway Limited (TSX:CP)(NYSE:CP) advises that there is no material news pending at this time. CP does not comment on market rumour and speculation."
Read the full Bloomberg report here»
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