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#The Wall Street Journal: Canadian Pacific plans another, higher bid to buy Kansas City Southern

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“#The Wall Street Journal: Canadian Pacific plans another, higher bid to buy Kansas City Southern”

Shareholders scheduled to vote on CN’s rival takeover bid on Aug. 19

Canadian Pacific Railway Ltd. is planning to make a new, increased offer for Kansas City Southern, according to people familiar with the matter, reigniting a takeover battle with Canadian National Railway Co. for the U.S. railroad.

Canadian Pacific’s board of directors met Monday to authorize a bid that values Kansas City Southern near $300 per share, the people said, or about $27 billion. There is no guarantee Canadian Pacific will follow through with the plan; if it does, it is expected to do so soon.

Canadian Pacific
CP,

-1.06%

had clinched a cash-and-stock deal with Kansas City Southern
KSU,

-0.80%

valued at around $275 per share, or $25 billion. Kansas City Southern later agreed to a sale to Canadian National instead after CN
CNI,

+0.14%

offered about $30 billion (then worth around $320 a share) and Canadian Pacific declined to raise its offer. Kansas City Southern shares traded Monday at around $269.60 apiece.

Canadian Pacific could be motivated to submit a new bid ahead of a planned shareholder vote on the Canadian National-Kansas City Southern deal slated for Aug. 19.

An expanded version of this report appears on WSJ.com.

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