Under the deal, CP agreed to acquire KCS in a stock and cash transaction representing an enterprise value of approximately USD $31 billion. The deal includes the assumption of $3.8 billion of outstanding KCS debt.
KCS intends to provide CP with nonpublic information and to engage in discussions and negotiations with CP with respect to CP’s proposal, subject in each case to the requirements of the CN merger agreement.
Kansas City Southern (NYSE: KSU) (“KCS”) today announced that it has received an unsolicited proposal from Canadian Pacific Railway Limited (TSX: CP) (NYSE: CP) (“CP”) reaffirming its interest in acquiring KCS.
The Kansas City Southern Board of Directors has determined CN’s proposal to be a “Company Superior Proposal” and plans to terminate its announced March 21 merger agreement with Canadian Pacific Railway.
Kansas City Southern’s Board of Directors unanimously determined that Canadian National Railway’s unsolicited proposal could reasonably be expected to lead to a “Company Superior Proposal” as defined in KCS’s merger agreement with Canadian Pacific Railway.