By Adriano Marchese

 

Kansas City Southern said that it has received an unsolicited proposal from Canadian Pacific Railway Ltd. affirming its interest in acquiring Kansas City Southern on the same terms as its bid last month.

The Kansas City-based railroad, which crosses the U.S. border with Mexico, said that the terms were identical to the proposal made on Aug. 10 in which CP would offer 2.884 of its shares and $90 in cash for each Kansas City Southern share.

Kansas City Southern has been the target of takeover interest from CP and its rival, Canadian National Railway Co.

On May 21, Kansas City Southern said that it had entered into a definitive agreement with CN to be acquired in a stock and cash transaction valued at $325 a share.

However, CN's $30 billion bid to buy Kansas City Southern ran into a major obstacle Tuesday, with the Surface Transportation Board ruling it won't be permitted to complete a deal using a temporary voting trust that was a crucial part of the offer. At the time, Kansas City Southern said that it was disappointed in the regulator's decision to reject CN's proposed voting trust and that they would work with CN to evaluate any available options.

The Kansas City Southern board of directors will evaluate CP's proposal and respond in due course, the company said.

 

Write to Adriano Marchese at adriano.marchese@wsj.com

 

(END) Dow Jones Newswires

September 01, 2021 08:51 ET (12:51 GMT)

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