CALGARY — Canadian Pacific Railway Ltd. is making a new takeover offer for Kansas City Southern that values the U.S. railway at US$31 billion.
The new bid comes ahead of a vote on Aug. 19 by Kansas City Southern shareholders on a rival offer by Canadian National Railway Co. valued at US$33.6 billion.
However, CP Rail says its offer is more likely to be approved by U.S. regulators.
Under its new offer, KCS shareholders would receive 2.884 CP Rail shares and US$90 in cash for each common share held, representing a value of about US$300 per share.
The bid is up from an earlier offer valued at US$275 per share.
The CN proposal would see KCS shareholders will receive US$200 in cash and 1.129 CN shares for each share in a offer valued at about US$325 per share.
This report by The Canadian Press was first published on Aug. 10, 2021.