Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Kansas City Pops As Canadian National Counters Rival In Bid For Railroad

Published 2021-04-20, 09:27 a/m
Updated 2021-04-20, 09:29 a/m
© Reuters.

© Reuters.

By Dhirendra Tripathi

Investing.com – Kansas City Southern (NYSE:KSU) shares rose more than 14% Tuesday as the U.S. railroad operator found itself at the heart of a bidding war between Canadian National Railway (NYSE:CNI) and Canadian Pacific (NYSE:CP).

Canadian National Railway has now offered $33.7 billion for Kansas City, trumping the $25 billion offer from Canadian Pacific one month ago. The latest offer values each Kansas share at $325, a 26.9% premium to its closing price on Monday.

The latest offer includes $200 a share in cash and 1.059 Canadian National shares for each share of Kansas City.

Under Canadian Pacific’s offer, each shareholder of Kansas City Southern was going to receive 0.489 share of the acquirer and $90 in cash for each KCS common share held.

The boards of the two companies had then agreed on the transaction, which is now in limbo, with Canadian National claiming its offer to be superior.

 

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.