Canadian Pacific Railway has sent an unsolicited proposal to acquire Kansas City Southern.
Under the proposal, KCS would receive 2.884 CP common shares and $90 in cash for each share of KCS common stock held.
On May 21, KCS announced that it had entered into a definitive agreement with CN. Under the deal, CN agreed to acquire KCS in a stock and cash transaction valued at $325 per KCS share based on the CN and KCS closing prices on May 12.
The transaction is subject to customary closing conditions, including receipt of regulatory approvals and the approval of KCS shareholders.
The KCS board of directors will evaluate CP’s proposal per the KCS-CN merger agreement. The KCS board of directors has not made any determination concerning CP’s proposal at this time.