By Stephen Nakrosis 
 

Railroad company Kansas City Southern on Thursday said its board unanimously determined that an unsolicited proposal received from Canadian Pacific Railway Ltd. on August 10 to acquire the company wasn't a superior proposal to a previously announced definitive merger agreement with Canadian National Railway Co.

Kansas City Southern also said its board reaffirms its recommendation that the company's shareholders vote in favor of the merger with Canadian National.

Kansas City Southern said it scheduled a special meeting of stockholders for 9 a.m. CT on August 19 for shareholders to vote on the merger and other proposals.

Under the terms of the Canadian National deal, Kansas City Southern said, its shareholders would receive $200 in cash and 1.129 shares of Canadian National common stock for each common share of Kansas City Southern.

Canadian Pacific in March said it agreed to buy Kansas City Southern in a deal valued at about $25 billion. Kansas City Southern later agreed to be acquired in a deal with Canadian National.

 

Write to Stephen Nakrosis at stephen.nakrosis@wsj.com

 

(END) Dow Jones Newswires

August 12, 2021 18:18 ET (22:18 GMT)

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