NEW YORK (TheStreet) -- Shares of Canadian Pacific Railway (CP) - Get Report are decreasing by 0.33% to $122.55 on Wednesday morning, as the company is said to have approached CSX Corp. (CSX) about combining.
The Canadian transcontinental railway operator, which is pursuing an unsolicited takeover bid for Norfolk Southern Corp. (NSC), revived a more than $20 billion attempt to merge with CSX recently, the Wall Street Journal reported late yesterday.
Canadian Pacific approached CSX again in January, according to Canadian Pacific CEO Hunter Harrison and sources cited by the Journal. Although the new approach was turned down, Canadian Pacific remains interested.
Canadian Pacific sees the advantage of merging with either company due to the stronghold both has in the eastern U.S.
The company continues to be committed to buying Norfolk Southern for about $30 billion, but is also determined to build a transnational railway and wants to keep its options open, Harrison said, according to the Journal.
"We've said all along that if we looked at the synergies between the two eastern carriers, right now both of them would work for us," he added.
Canadian Pacific made its first bid to purchase CSX in 2014.
Shares of CSX are up 1.83% to $25.09 at the start of trading on Wednesday.
Separately, TheStreet Ratings Team has a "Hold" rating with a score of C+ on the stock.
The primary factors that have impacted the rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks.
The company's strengths can be seen in multiple areas, such as its notable return on equity and expanding profit margins.
As a counter to these strengths, the team also finds weaknesses including a generally disappointing performance in the stock itself, deteriorating net income and generally higher debt management risk.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: CP