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Kansas City Southern to scrap CP deal after revised US$33.6-billion offer from CN
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The logo of Kansas City Southern is shown on a restored 1954 Kansas City Southern passenger locomotive at Union Station in Kansas City, Mo. THE CANADIAN PRESS/AP, Norman Ng, The Kansas City Star
Kansas City Southern Inc. says it is terminating its merger agreement with CP Rail after determining that rival Canadian National Railway’s revised US$33.6-billion offer was superior.
Under terms of the agreement announced Thursday evening, Montreal-based CN Rail will pay US$200 cash and 1.129 shares of CN stock for each of Kansas City’s 90.9 million shares and assume US$3.8 billion of KCS debt.
MONTREAL Kansas City Southern Inc. says it is terminating its merger agreement with CP Rail after determining that rival Canadian National Railway s revised US$33.6-billion offer was superior. Under terms of the agreement announced Thursday evening, Montreal-based CN Rail will pay US$200 cash and 1.129 shares of CN stock for each of Kansas City s 90.9 million shares and assume US$3.8 billion of KCS debt. We are delighted that KCS has deemed CN s binding proposal superior, recognizing the many compelling benefits of our combination and expressing confidence in CN s ability to obtain the necessary approvals and successfully close the transaction, stated CN chief executive JJ Ruest.
MONTREAL Kansas City Southern Inc. says it is terminating its merger agreement with CP Rail after determining that rival Canadian National Railway s revised US$33.6-billion offer was superior. Under terms of the agreement announced Thursday evening, Montreal-based CN Rail will pay US$200 cash and 1.129 shares of CN stock for each of Kansas City s 90.9 million shares and assume US$3.8 billion of KCS debt. We are delighted that KCS has deemed CN s binding proposal superior, recognizing the many compelling benefits of our combination and expressing confidence in CN s ability to obtain the necessary approvals and successfully close the transaction, stated CN chief executive JJ Ruest.
Published Thursday, May 13, 2021 7:12PM EDT MONTREAL - Kansas City Southern Inc. says it is terminating its merger agreement with CP Rail after determining that rival Canadian National Railway s revised US$33.6-billion offer was superior. Under terms of the agreement announced Thursday evening, Montreal-based CN Rail will pay US$200 cash and 1.129 shares of CN stock for each of Kansas City s 90.9 million shares. The sum includes a US$700-million break fee payable to Calgary-based Canadian Pacific Railway. The U.S. railway says it has notified CP Rail that it intends to terminate its agreement. CP Rail now has the right to amend its offer, with the KCS board to determine whether a revision constitutes a better offer than CN s.