Canadian Pacific Plans New, Higher Bid for Kansas City Southern

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 had clinched a cash-and-stock deal with Kansas City Southern valued at around $275 per share, or $25 billion. Kansas City Southern later agreed to a sale to Canadian National instead after CN 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.

Source link

Previous post Companies Thought They Had Plans for Fall. Now They Are Scrapping Them
Next post Biden to Nominate María Pagán as U.S. Envoy to World Trade Organization