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Kansas City Southern (NYSE: KSU) (“KCS”) today announced that its Board of Directors has unanimously determined, after consultation with the Company’s outside legal and financial advisors, that the unsolicited proposal received from Canadian National Railway (TSX: CNR, NYSE: CNI) (“CN”) on April 20, 2021 to acquire KCS in a cash and stock transaction valued by CN at $325 per KCS share could reasonably be expected to lead to a “Company Superior Proposal” as defined in KCS’s merger agreement with Canadian Pacific Railway Limited (TSX: CP, NYSE: CP) (“CP”).
KCS intends to provide CN with nonpublic information and to engage in discussions and negotiations with CN with respect to CN’s proposal, subject in each case to the requirements of the CP merger agreement.
Kansas City Southern to Begin Discussions with Canadian National Railway
Kansas City Southern (NYSE: KSU) (“KCS”) today announced that its Board of Directors has unanimously determined, after consultation with the Company’s outside legal and financial advisors, that the unsolicited proposal received from Canadian National Railway (TSX: CNR, NYSE: CNI) (“CN”) on April 20, 2021 to acquire KCS in a cash and stock transaction valued by CN at $325 per KCS share could reasonably be expected to lead to a “Company Superior Proposal” as defined in KCS’s merger agreement with Canadian Pacific Railway Limited (TSX: CP, NYSE: CP) (“CP”).
KCS intends to provide CN with nonpublic information and to engage in discussions and negotiations with CN with respect to CN’s proposal, subject in each case to the requirements of the CP merger agreement.
wiredprnews
The Railway group Canadian National has made $ 33.7bn in Kansas City Southern, including loans, as it seeks to cancel a US deal last month with Canada Pacific.
A Montreal-based company has donated cash and shares to Kansas City Southern for $ 325 per share, about 21% more than he agreed to give from the Pacific Ocean. However, it needs to be closely monitored because of its size.
According to the agreement, Canada National provided shareholders in Kansas City $ 200 in cash and 1,059 shares of ordinary CN. Canada Pacific donated $ 90 and the balance. To pay for the deal, CP said it would offer new 44.5m shares and raise $ 8.6bn in debt.