The report by news website Semafor said Union Pacific, which operates in 23 western states, was working with investment bankers at Morgan Stanley to pursue a deal with one of the two major eastern railroads, CSX or Norfolk Southern. Union Pacific CEO Jim Vena has made public comments of his interest in creating a transcontinental railroad.

Union Pacific is reportedly considering acquiring a rival railroad, sending shares of CSX and Norfolk Southern higher.

Railroad operator Union Pacific is exploring a deal to buy smaller rival Norfolk Southern , the Wall Street Journal reported, in a merger that would bolster the industry leader's heft and likely draw intense regulatory scrutiny.