Reports: Canadian Pacific considering takeover of Norfolk Southern

Canadian Pacific Railway Ltd. is mulling a potential takeover of Norfolk Southern Corp., national news media reported yesterday.

The Canadian Class I is raising financing and has held "early-stage merger talks" with NS, according to BloombergBusiness.

Trading of NS stock was temporarily halted yesterday after the news broke. By day's end, NS shares rose 11 percent on the reports, according to Zacks.

Talk of an NS merger revives CP's efforts to build a transcontinental carrier, after talks with CSX Corp. failed last year.

In response to the rumors about talks with NS, CP issued a statement saying "that there is no material news pending at this time. CP does not comment on market rumor and speculation."

NS spokespersons also have declined to comment, according to news reports.