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. According to the report in the Wall Street Journal late on Sunday, the No. 2 Canadian railroad made a bid last week for Jacksonville, Florida-based CSX, which rejected the offer. Both companies said they did not comment on market rumors.Shares in Canadian Pacific were not traded Monday as the markets in Canada were closed for a holiday.In a client note, Cowen & Co analyst Jason Seidl wrote that Canadian Pacific could in theory team up with hedge fund Pershing Square Capital Management and take a bid directly to CSX shareholders.Activist investor William Ackman, who runs Pershing Square, in 2012 had recruited Hunter Harrison, who had previously been chief executive officer of Canadian National Railway Co , for that post at Canadian Pacific.
CSX Corporation (CSX), together with its subsidiaries, is a transportation supplier. Shares of CSX traded higher by 9.82% or $2.94/share to $32.88. 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 28388268.
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