How far will CP go?

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CP CEO E. Hunter Harrison
Just how far is Canadian Pacific willing to go with its pursuit of Norfolk Southern?

We will get an idea on Tuesday, when CP CEO E. Hunter Harrison is expected to respond to NS’s outright rejection of CP’s merger overtures. Harrison, top managers, and CP investor and board member Bill Ackman will address the investment community during a call scheduled for 9 a.m. Eastern time tomorrow.

NS CEO James Squires made it clear on Friday morning that the railroad wants no part of CP’s $28 billion acquisition offer, which it termed “grossly inadequate,” highly unlikely to win regulatory approval, and a bad fit that would put the combined railroads at a long-term competitive disadvantage.

CP shot back on Friday afternoon, saying it “takes exception to the claims, misdirection and mischaracterization of its offer.” CP says its management team would, “deliver clarity, context and detail to the proposed transaction. CP will also address all concerns about timely regulatory approval raised by NS and correct every inaccuracy.​​​”

Harrison has stopped short of saying CP would pursue a hostile takeover of NS. But he has said the railway will aggressively court NS shareholders.

UPDATE: Dec. 5, 2015, 9:44 a.m. Central time. Clarified conference call time.
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