Kansas City Southern Receives Reiterated Proposal from Canadian Pacific
September 01 2021 - 9:06AM
Dow Jones News
By Adriano Marchese
Kansas City Southern said that it has received an unsolicited
proposal from Canadian Pacific Railway Ltd. affirming its interest
in acquiring Kansas City Southern on the same terms as its bid last
month.
The Kansas City-based railroad, which crosses the U.S. border
with Mexico, said that the terms were identical to the proposal
made on Aug. 10 in which CP would offer 2.884 of its shares and $90
in cash for each Kansas City Southern share.
Kansas City Southern has been the target of takeover interest
from CP and its rival, Canadian National Railway Co.
On May 21, Kansas City Southern said that it had entered into a
definitive agreement with CN to be acquired in a stock and cash
transaction valued at $325 a share.
However, CN's $30 billion bid to buy Kansas City Southern ran
into a major obstacle Tuesday, with the Surface Transportation
Board ruling it won't be permitted to complete a deal using a
temporary voting trust that was a crucial part of the offer. At the
time, Kansas City Southern said that it was disappointed in the
regulator's decision to reject CN's proposed voting trust and that
they would work with CN to evaluate any available options.
The Kansas City Southern board of directors will evaluate CP's
proposal and respond in due course, the company said.
Write to Adriano Marchese at adriano.marchese@wsj.com
(END) Dow Jones Newswires
September 01, 2021 08:51 ET (12:51 GMT)
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