REPORT: Canadian Pacific wants to buy Norfolk Southern

Canadian Pacific Railway is looking into a potential takeover of US counterpart Norfolk Southern, Bloomberg's Ed Hammond and Jeffrey McCracken report, citing people familiar with the matter.

CP is Canada's second-largest railroad and made headlines in 2011 and 2012 when activist investor Bill Ackman acquired about 14% of its stock and uprooted the company's board and management.

Ackman's Pershing Square is still the largest shareholder in Canadian Pacific.

Last year, CP tried to merge with another US railway, CSX Corp, but talks failed.

Now, the Canadian company is in early-stage talks with Norfolk, which is the second-largest railroad in the eastern US and valued around $25 billion, according to the Bloomberg report. It is reportedly in the process of raising financing.

Trading in Norfolk Southern was temporarily halted on Monday. Shares have since jumped about 12%.

Read the full Bloomberg report here»

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