Report: Shippers express concerns over CP-NS merger

Industry organizations that represent major customers of Norfolk Southern Corp. have asked the Surface Transportation Board to reject Canadian Pacific's hostile takeover bid, according to the Reuters news agency.

Reuters reviewed copies of the letters, which have not been made public. Sent last month, the letters revealed customers' concerns over CP's cost-cutting plans, the impact on service and the potential for higher prices for customers, the news agency reported.

CP has made three offers to acquire NS, and NS has rejected the offers as "grossly inadequate." After the third rejection, CP officials said the company will "review its strategic alternatives."