News

The Wall Street Journal: Canadian Pacific plans another, higher bid to buy Kansas City Southern

0

Canadian Pacific Railway Ltd. is planning to make a new, increased offer for Kansas City Southern, according to people familiar with the matter, reigniting a takeover battle with Canadian National Railway Co. for the U.S. railroad.

Canadian Pacific’s board of directors met Monday to authorize a bid that values Kansas City Southern near $300 per share, the people said, or about $27 billion. There is no guarantee Canadian Pacific will follow through with the plan; if it does, it is expected to do so soon.

Canadian Pacific
CP,
-1.06%

had clinched a cash-and-stock deal with Kansas City Southern
KSU,
-0.80%

 valued at around $275 per share, or $25 billion. Kansas City Southern later agreed to a sale to Canadian National instead after CN
CNI,
+0.14%

offered about $30 billion (then worth around $320 a share) and Canadian Pacific declined to raise its offer. Kansas City Southern shares traded Monday at around $269.60 apiece.

Canadian Pacific could be motivated to submit a new bid ahead of a planned shareholder vote on the Canadian National-Kansas City Southern deal slated for Aug. 19.

An expanded version of this report appears on WSJ.com.

Also popular on WSJ.com:

When Amazon customers leave negative reviews, some sellers hunt them down.

U.N. report says some climate-change effects may be irreversible.

Personal Finance Daily: Can my employer make me get vaccinated and this $1,880 ‘distressed’ cardigan features ‘handmade punctures’

Previous article

Market Snapshot: U.S. stock futures struggle for direction as investors look ahead to inflation data

Next article

You may also like

Comments

Leave a reply

Your email address will not be published. Required fields are marked *

More in News