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.