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Monday, October 13, 2014

Bid report boosts CSX stock, but deal chances seen remote, (NYSE: CSX)

Shares of No. 3 U.S. railroad CSX Corp rose nearly 10 percent on Monday following a report of a rebuffed takeover bid by Canadian Pacific Railway Ltd, but analysts said any such deal would face significant regulatory and other hurdles."You could make the argument that there is not much overlap between the two networks and between their businesses," said Jim Corridore, head of industrials equity research at Standard & Poor's. "But they would face significant hurdles of getting a merger passed by the U.S. Surface Transportation Board (STB)."Any merger would require STB approval.The Wall Street Journal reported on Sunday that the No. 2 Canadian railroad made a bid last week for Jacksonville, Florida-based CSX, which rejected the offer. Both companies declined to comment..

CSX Corporation (CSX), together with its subsidiaries, is a transportation supplier. Shares of CSX traded higher by 5.88% or $1.76/share to $31.70. In the past year, the shares have traded as low as $25.28 and as high as $32.66. On average, 5822580 shares of CSX exchange hands on a given day and today's volume is recorded at 40306108.