Deals
Kansas City Southern Begins Talks With Canadian National
- No assurance talks with CN will result in a transaction
- Canadian Pacific says rival bid presents regulatory risks
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Kansas City Southern said a proposal by Canadian National Railway Co. may lead to better terms than an offer by Canadian Pacific Railway Ltd., potentially escalating a bidding war in one of the industry’s biggest potential deals in decades.
Kansas City Southern said Saturday it will begin talks with Canadian National Railway, confirming an earlier Bloomberg News report. The negotiations could yield a “superior proposal” than one reached last month with Canadian Pacific Railway, it said. The U.S. rail operator remains bound by the earlier merger agreement and there’s no assurance that talks with the rival bidder would result in a transaction, it added.