Canadian Pacific Railway Submits Higher Bid For Kansas City Southern

(RTTNews) - Canadian Pacific Railway Limited (CP, CP.TO) said that it has submitted a superior proposal to acquire Kansas City Southern (KSU) or "KCS" in a stock and cash transaction representing an enterprise value of about $31 billion.

The proposed transaction values KCS at $300 per share, representing a 34% premium2, based on the CP closing price on August 9, 2021 and KCS unaffected closing price on March 19, 2021.

Following the closing into a voting trust, common shareholders of KCS will receive 2.884 CP common shares and $90 in cash for each share of KCS common stock held. The proposed transaction includes the assumption of $3.8 billion of outstanding KCS debt.

CP noted that the superior proposal represents improved terms to those agreed to in the CP-KCS merger agreement entered into on March 21, 2021 that are substantially similar to those in the CN merger agreement, but offers significantly higher regulatory certainty than the proposed CN merger and significantly higher value than our previously agreed combination.