Kansas City Southern To Evaluate Proposal From Canadian Pacific Railway - Quick Facts

(RTTNews) - Kansas City Southern (KSU) has received an unsolicited proposal from Canadian Pacific Railway Limited (CP.TO, CP), in which CP reiterated identical terms to the proposal made on August 10. The Board of Kansas City Southern will evaluate CP's proposal in accordance with the terms of merger agreement with Canadian National Railway Company.

Under the Canadian Pacific proposal, holders of Kansas City Southern common stock would receive 2.884 CP common shares and $90 in cash for each share of KCS common stock held.

In May, KCS entered into a definitive agreement with Canadian National Railway Company (CNR.TO, CNI), under which CN agreed to acquire KCS in a stock and cash deal valued at $325 per KCS share.

Separately, Kansas City Southern said it is disappointed in the Surface Transportation Board's decision to reject CN's proposed voting trust.