Canadian Pacific Railway Ltd said on Monday that it had ended talks to purchase CSX Corp and that the two companies planned no further discussions, sending shares of the No. 3 U.S. railroad operator down nearly 3 percent.A source familiar with the matter told Reuters recently that the two railroads had held exploratory talks this month and that they were contemplating whether to take things further. Neither side had confirmed the talks, first reported by the Wall Street Journal a week ago.CP said on Monday that it had proposed an integrated coast-to-coast combination that would have improved customer service, promoted competition, alleviated congestion and generated significant shareholder value.Major North American railroads have been struggling to keep up with demand, with record crop harvests, growing oil-by-rail shipments and rising volumes of consumer goods moving by train. However, analysts had cautioned service problems could make the U.S. Surface Transportation Board, which regulates the industry, skeptical about approving any deal.
CSX Corporation (CSX), together with its subsidiaries, is a transportation supplier. Shares of CSX fell by 1.03% or $-0.35/share to $33.51. In the past year, the shares have traded as low as $25.58 and as high as $34.09. On average, 6953440 shares of CSX exchange hands on a given day and today's volume is recorded at 19288056.
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