CN Rail counters CP Rail s bid for U S railway
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Posthaste: Five key takeaways from Canadian National Railway s superior proposal for Kansas City Southern
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Provided by Dow Jones By Robb M. Stewart Kansas City Southern s shares rallied Tuesday on the prospect of a bidding war after Canadian National Railway Co. made a roughly $30 billion offer that challenges an agreed sale to its Canadian rival. In morning trading, Kansas City s shares were 16% higher at $296.30. They are up 45% so far in 2021, and have more than doubled over the past 12 months. CN s shares were down 6.8% at C$138.17, while rival Canadian Pacific Railway Ltd. s were 0.3% lower at C$456.65. CN said it is offering $325 for each share of Kansas City Southern, including $200 a share in cash and 1.059 CN shares. Its bid represents a 21% premium to CP s agreement to pay $275 a share, including $90 in cash, in a roughly $25 billion deal reached last month.
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