Union Pacific appears to be using a familiar playbook that large, publicly traded companies trot out when considering mergers and acquisitions: Send up trial balloons and see how they fly. These trial balloons let management gauge market reaction,

Union Pacific's new CEO emphasized his commitment to improving safety and service while maintaining a focus on cost-cutting measures. He aims to enhance day-to-day operations.

What Happened? Shares of freight transportation company Union Pacific (NYSE:UNP) fell 3.2% in the pre-market session after reports revealed the company was considering a major acquisition of an East Coast railroad.

In a shareholder-friendly move, Union Pacific Corporation’s (UNP) board of directors approved a dividend hike of 3%, thereby raising its quarterly cash dividend to $1.38 per share ($5.52 annualized) from $1.