July 26 (Reuters) - Union Pacific ( UNP ), the largest

U.S. railroad operator, could reach an agreement to acquire

rival Norfolk Southern ( NSC ) as soon as early next week,

Bloomberg News reported on Friday, citing people familiar with

the matter.

Union Pacific ( UNP ) had said on Thursday it is in advanced talks

to acquire its rival, signaling that a deal to form a $200

billion coast-to-coast rail company could be close - and

potentially trigger further consolidation among remaining

freight rail giants.

Reuters could not immediately verify the report.