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The bidding war for Kansas City Southern is heating up after Canadian Pacific Railway Ltd. raised its offer for the U.S. railroad operator.
The new proposal, which raises the price tag by about $2 billion to $27.29 billion, comes roughly four months after Canadian Pacific said it would not increase its bid.
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Rival Canadian National and Kansas City Southern in May agreed to a $29.56 billion deal.
|KSU||KANSAS CITY SOUTHERN||289.91||+19.50||+7.21%|
|CP||CANADIAN PACIFIC RAILWAY LTD.||71.73||-0.96||-1.32%|
|CNI||CANADIAN NATIONAL RAILWAY CO.||108.04||+0.07||+0.06%|
Canadian Pacific and Canadian National have since March been locked in a bidding war for Kansas City Southern, which would give either company the pieces to link a railway from Canada to the United States to Mexico.
Canadian Pacific’s revised offer, which equates to $300 per share, if accepted, would pay Kansas City Southern shareholders $90 cash and 2.884 Canadian Pacific shares for each Kansas City Southern share owned.
Canadian National’s offer is worth $325 per share. Kansas City Southern shareholders are scheduled to vote on the proposal on Aug. 19.
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Kansas City Southern shares were up 32% this year through Monday while Canadian Pacific shares gained 4.86% and Canadian National shares slipped 1.68%.
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