A Missouri-based railroad is at the heart of a bidding war between two Canadian railroads.
Kansas City Southern, based in Kansas City, controls critical cross-border routes with Mexico and that has the interest of both Canadian Pacific and Canadian National railroads.
Canadian National offered a 33.6 billion dollar takeover bid in May after Canadian Pacific refused to up their previous bid of 25 billion dollars.
Today’s (Tuesday) bid by Canadian Pacific includes 2.884 shares of Canadian Pacific common stock plus $90 in cash for each share of KC Southern stock held and includes the assumption of 3.8 billion dollars of outstanding Kansas City Southern debt.
Shares of Kansas City Southern jumped more than 7% at the opening bell today (Tuesday).
Kansas City Southern is the smallest of the remaining major U.S. railroads.