April 20, 2021 CN Counters CPKC with a ‘Superior Proposal’ (UPDATED) Written by William C. Vantuono, Editor-in-Chief Perhaps not so surprisingly, almost exactly one month to the day after Canadian Pacific and Kansas City Southern announced their intent to merge into CPKC (Canadian Pacific Kansas City), CN made a counter-offer it said is a “superior proposal” that “will result in a safer, faster, cleaner and stronger railway.” CN’s proposal of $325 per KCS share “represents a 21% premium over the implied value of the CP transaction and values KCS at an enterprise value of $33.7 billion.” Combining CN and KCS “will create the premier railway for the 21st century, connecting ports in the United States, Canada and Mexico to facilitate trade and economic prosperity across North America … providing superior service, enhanced competition and new market access to move goods across North America efficiently and safely,” CN said. “This rail and logistics network would reduce traffic congestion and prevent thousands of tons of greenhouse gas emissions from entering the atmosphere every day. This combination will also significantly expand the combined company’s total addressable market and provide growth opportunities across the rapidly growing USCMA network.”