Canadian Pacific Railway Ltd. (CP.T) on Tuesday said it proposed a merger with Norfolk Southern Corp. (NSC) to create a transcontinental railroad company with potential for stronger earnings growth. The Canadian railroad did not detail what its bidding price is other than to say that its proposal “includes a sizable premium.” Bloomberg reported Canadian Pacific’s interest in its American competitor last week (http://www.bloomberg.com/news/articles/2015-11-09/canadian-pacific-said-to-explore-takeover-of-norfolk-southern). Shares of Norfolk Southern surged more than 6% while Canadian Pacific shares slid 0.5% in Tuesday’s after-hours trading.
A little consolidation in the space might get some of the competitors off the mat?
Keep an eye $CSX, $CNI $KSU and $GWR. Decent patterns setting up there on the weekly and monthly charts.