Kansas City Southern Railway says the bid from Canadian Pacific may be the superior proposal compared to an offer by Canadian National, which didn’t gain Surface Transportation Board preliminary approval.
Legal and financial advisers conclude the deal could reasonably be expected to lead a “Company Superior Proposal” as defined in KCS’s merger agreement with Canadian National. KCS remains bound by the terms of the Canadian National merger agreement, in which CN agreed to acquire KCS in a stock and cash transaction valued at $325 per KCS share.
The renewed offer from Canadian Pacific Railway is a cash and stock transaction valued at $300 per KCS share. Canadian Pacific maintains that a CP-KCS merger is the only viable option for KCS following the Surface Transportation Board ruling.
Kansas City Southern announced last week it would engage in discussions with Canadian Pacific Railway. Kansas City Southern also scheduled a September 24 stockholders meeting to vote on the Canadian National proposal.