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Investing.com -- Norfolk Southern (NYSE: NYSE:NSC) stock rose 3.8% in after-hours trading Thursday following a Wall Street Journal report that Union Pacific (NYSE: NYSE:UNP) is exploring a potential acquisition of the railroad operator.
According to the report, Union Pacific, with a market value of approximately $140 billion, is holding early-stage talks to acquire Norfolk Southern, which is valued at about $60 billion. Sources familiar with the matter cautioned that discussions are preliminary, with no guarantee they will result in a deal or receive regulatory approval. The report also noted that another suitor could potentially emerge.
During the regular trading session, both Norfolk Southern and CSX Corporation (NASDAQ:CSX) shares gained following an earlier Semafor report suggesting Union Pacific was exploring a potential railroad acquisition. However, CSX shares traded lower in after-hours trading after the WSJ clarified that Norfolk Southern was the specific target of Union Pacific’s interest.
A merger between Union Pacific and Norfolk Southern would represent a significant consolidation in the U.S. railroad industry, combining two major operators. The potential deal would likely face substantial regulatory scrutiny given the size of both companies and the essential role they play in the nation’s freight transportation infrastructure.