Deals
Canadian Pacific Makes New $27 Billion Bid for K.C. Southern
- Offer values target at $300 a share, or about $27 billion
- Latest bid aimed at disrupting merger with Canadian National
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Canadian Pacific Railway Ltd. made a new, higher bid for Kansas City Southern, looking to derail the U.S. railroad’s pending merger with rival Canadian National Railway Co. ahead of an important shareholder vote less than two weeks away.
The offer is $300 a share, Canadian Pacific said in a statement Tuesday, or about $27 billion in equity value. While that’s higher than its original $25 billion bid from March, the new price doesn’t match the $30 billion deal that Kansas City Southern’s board accepted from Canadian National in May. CN’s offer, which works out to about $325 a share, will be voted on by the U.S. railroad’s shareholders on Aug. 19.