Kansas City Southern Dumps Canadian Pacific for Canadian National
Kansas City Southern (NYSE: KSU) has terminated its deal to be acquired by Canadian Pacific Railway (NYSE: CP), instead accepting a $33 billion bid from Canadian National Railway (NYSE: CNI).
Kansas City Southern (KCS) and Canadian Pacific (CP) struck a deal back in April, but Canadian National (CN) countered with a rival offer that KCS' board has deemed superior. On Thursday, Canadian Pacific said it would not sweeten its bid, setting the stage for KCS and CN to formalize a deal.
As part of the termination and new agreement, Kansas City Southern paid a $700 million breakup fee to CP, which will be reimbursed by Canadian National.
Source Fool.com
