Kansas City Southern Shares Rally After Canadian National Lobs Rival Bid
April 20 2021 - 10:52AM
Dow Jones News
By Robb M. Stewart
Kansas City Southern's shares rallied Tuesday on the prospect of
a bidding war after Canadian National Railway Co. made a roughly
$30 billion offer that challenges an agreed sale to its Canadian
rival.
In morning trading, Kansas City's shares were 16% higher at
$296.30. They are up 45% so far in 2021, and have more than doubled
over the past 12 months.
CN's shares were down 6.8% at C$138.17, while rival Canadian
Pacific Railway Ltd.'s were 0.3% lower at C$456.65.
CN said it is offering $325 for each share of Kansas City
Southern, including $200 a share in cash and 1.059 CN shares. Its
bid represents a 21% premium to CP's agreement to pay $275 a share,
including $90 in cash, in a roughly $25 billion deal reached last
month.
Write to Robb M. Stewart at robb.stewart@wsj.com
(END) Dow Jones Newswires
April 20, 2021 10:37 ET (14:37 GMT)
Copyright (c) 2021 Dow Jones & Company, Inc.
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