Unity2D - Lerp is rotating in 3D space instead of 2D

I'm sure this has been answered but I have spent hours trying to go through unityAnswers and cannot understand the actual problem.

My Scene: http://screencast.com/t/O7g3Wjzhfq1Q

I want to make the gameObject rotate towards the Station.

             Vector3 direction = (station.transform.position-transform.position).normalized;
             Debug.Log(direction.x + ", "+direction.y+", "+direction.z);
             Debug.Log(transform.rotation.eulerAngles);
             Quaternion look = Quaternion.LookRotation(direction);
             Debug.Log(look.eulerAngles);
             transform.rotation = Quaternion.Lerp(transform.rotation, look, 10*Time.deltaTime);

The results of my Debugs are: 0.9670134, -0.2547254, 0

0.0, 0.0, 0.0

14.8, 90.0, 0.0

When I run, the ship rotates the sprite in 3d space:

http://screencast.com/t/skebDafMpt9C

I tried adding an upaxis vector to LookRotation, but regardless which axis I choose it won't rotate as "expected".

Could someone please explain what I'm missing. What conceptual mistake am I making in understanding how these 2D rotations are supposed to work.