Kansas City Southern Council will review it offering of $ 33.7bn from the Canadian National, a recent incident in the fight for U.S. railway operators that could include a major annual merger.
Kansas City Southern has already signed a joint venture with CN Pacific counterpart, CN provided $ 28.9bn plus credit to find a U.S. company last month, but also review what the competitors are doing due to allowing shareholders to review, CN said on Saturday.
Any sale would make the first North American railway across Canada, the US, and Mexico, and would be the largest operation among railway operators since 1999.
“We are confident that CN is a good idea, a good friend, a better railway and a better solution to KCS and the North American economy,” said Robert Pace, chairman of the Canada National board.
Canada Pacific from Calgary said Kansas City’s re-enactment of the plan “is only in line with the CP agreement”. It added that “we are exhorted to [Kansas City Southern] we will take a closer look at what CN will offer in the near future, which we think will make them doubt the real value and determine what they want. “
Kansas City Southern did not respond promptly to a request for comment. A source close to the company told the Financial Times that the Canada National proposal could be closely monitored by a US regulator, the Surface Transportation Board.
It was not immediately clear when it was time to reconsider.
At $ 325 per share, plus $ 200 per share, Montreal from Canada National represents a 21% interest rate from the Canadian Pacific, at $ 275 per share plus $ 90 per cent and the remaining balance.
All Canadian companies operate in the central and eastern US, along with CSX and Norfolk Southern. Kansas City Southern is the smallest Class 1 railway line in the US but is the only one with access routes north and south and a route from Missouri to all the Mexican coast.
The last major railway work took place in the late 20th century, when CSX and Norfolk Southern bought Conrail.
Additional reports from James Fontanella-Khan and Ortenca Aliaj