This post was originally published on this site
Investing.com — Kansas City Southern stock (NYSE:KSU), at the heart of a bidding war between Canadian Pacific Railway (NYSE:CP) and Canadian National Railway (NYSE:CNI), was up 4.2% in Tuesday’s premarket on a report in The Wall Street Journal about a likely revised offer from Canadian Pacific.
According to the WSJ report, Canadian Pacific’s new offer values each Kansas share near $300, or about $27 billion. This will be an 11.3% premium to Kansas’ Monday closing of $269.60.
There is no guarantee of a new offer being made though, the report said.
As of now, a shareholder meeting is scheduled for August 19 to vote on the Canadian National-Kansas City Southern deal, so any offer from Canadian Pacific will have to be made before that date.
Canadian Pacific has urged Kansas City shareholders to vote against Canadian National’s offer.
The bidding for Kansas City started in April when Canadian Pacific first offered to buy the company, valuing it at $25 billion. Canadian National Railway made it a contest with its $33.7 billion offer that Kansas City accepted.
The bidding war comes as the U.S. economy booms while supply chains suffer because of COVID. There have been no major railroad mergers in the U.S. in the last two decades.
