Canadian Pacific To Sweeten Bid For Kansas City Southern

(RTTNews) - Canadian Pacific Railway (CP) is reportedly planning to sweeten its bid for Kansas City Southern (KSU) as its battle with Canadian National Railway Co. (CNI) for the US railroad company continues.

According to WSJ, Canadian Pacific's board authorized a renewed bid worth $27 billion or $300 per share on Monday. According to people in the know, the bid, if true, will take place sooner than expected.

In prior interaction of the companies, Canadian Pacific has tabled a $25 billion or $275 per share offer which was improved by Canadian National, who offered $30 billion or $320 per share.

The Canadian National and Kansas City deal is reported to begin on August 19 and Canadian Pacific might post their bid ahead of the shareholders meeting.

The deal, which can still be off-tracked by the regulatory boards, will keep Canadian Pacific in the hunt.

The freight railroad plays an integral role in US-Mexico trade and the CEO of Canadian Pacific was hopeful during their earnings call saying that the interest "has not changed, has not wavered at all. In fact, it's grown stronger."

According to Wall Street Journal, the two-fold deal will see an acquisition company buying all the KCS shares and wait for the approvals for the companies to merge. However, both these steps will need to be nodded by the U.S. Surface Transportation Board.

STB has already approved a voting trust for Canadian Pacific in May and the same has not been done yet for Canadian National.