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Norfolk Southern again rejects Canadian Pacific's merger bid

OMAHA, Neb. (AP) — Norfolk Southern railroad says Canadian Pacific's latest takeover offer is still "grossly inadequate" and unlikely to be approved by federal regulators.

The Norfolk, Virginia, railroad sent a letter Monday reiterating its rejection of the revised offer Canadian Pacific delivered last week.

Canadian Pacific officials have said they're ready to take their offer directly to shareholders because Norfolk Southern executives have been unwilling to sit down and negotiate.

Norfolk Southern estimates that the latest cash and stock offer would be worth roughly $27 billion based on Canadian Pacific's stock price.

Canadian Pacific says the offer is worth somewhere between $37 billion and $42 billion because its estimate is based on the projected value of stock in a new company that would own both railroads.

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