Calgary Alberta - Canadian Pacific Railway Limited (CP) remains keen on pursuing Norfolk Southern (NS).
 
The company has now asked shareholders of the US railroad company to submit a resolution to NS's investors for possible merger talks between the board and CP management.
 
According to NS, the deadline to submit the shareholders' proposal for the company's annual general meeting is 14 Feb 2016.
 
CP's major shareholders, including Pershing Square Capital Management's Bill Ackman, have been urging the company to employ aggressive methods to acquire NS and replace its directors.
 
However, the company has chosen to employ only subtle measures for now.
 
NS has already declined three takeover bids from the Canadian railroad giant, including one in December for US$30 billion.
 
It believes that the merger will fail to gain antitrust regulators' approval, as well as result in additional costs for the firm, which is already facing difficult times.
 
The company deems the amount offered by CP to be inadequate.
 
In addition, peers have also voiced concerns that the merged firm would decrease competition in the railroad industry.
 
On the contrary, Canadian operators say that the combined firm would save $1.8 billion annually, without having to add any extra tracks.
 
The proposed acquisition would create a transcontinental railroad network from coast to coast.
 
It would also eradicate rail-car exchanges between the two corporations.
 
CP is surprised at the amount of resistance shown by NS, even in holding talks.
 
This may lead the railroad giant to push for a hostile takeover of NS.
 
According to a report by Dow Jones, CP has filed a complaint with the US Department of Justice, alleging that certain competitors have grouped together to prevent the formation of the country's first transcontinental railway corporation.
 
NS reported unimpressive fourth-quarter earnings, with net income of US$361 million, a 30 percent decline from last year.
 
The decrease is mainly attributed to cut in the fuel-surcharge revenue due to a decline in coal usage.
 
Natural gas is a popular energy source in the industry, primarily because of cheaper prices as well as support from the US Environmental Protection Agency.
 
The agency promotes natural gas as an alternative to reduce environmental hazards from coal usage.
 
Hassan Ali.