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Kansas City Southern to accept CP Rail offer

Christian Fernsby |
Kansas City Southern said it’s backing out of a merger agreement with Canadian National Railway and plans to accept a competing offer from Canadian Pacific Railway.

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Canadian Pacific’s proposal was declared superior even though at about $27 billion it’s lower than Canadian National’s $30 billion offer, which began to unravel last month amid questions over whether it would win regulatory approval. Canadian National has about five business days to negotiate terms that could change the U.S. railroad’s decision, Kansas City Southern said in a statement Sunday.

Canadian National said it’s continuing to evaluate its options and “will make carefully considered decisions in the interests of all CN shareholders and stakeholders and in line with our strategic priorities.”

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