The U.S. Railways Kansas City Southern (KCS) announced that it unanimously decided, after consulting with legal and financial advisors, to review An unsolicited offer for purchase by a Canadian citizen (CN), without guaranteeing that these negotiations will lead to a deal.
KCS, which has operations in Mexico, On April 20, Canadian National Unsolicited Bid for the Company, valued at $ 325 per share, which could reasonably be expected to result in a superior bid, made by Canadian Pacific Railroad. Merger with KCS.
In a statement, KCS revealed that it has Intention to provide Canadian citizen with information to the public And participate in discussions and negotiations on the bid, taking into account the requirements of the Canadian Pacific Integration Agreement in each case.
KCS indicated that it remains bound by the terms of the CP merger agreement, however, its board of directors has not decided that the CN proposal actually represents the superior proposal of the company, as defined in the CP merger agreement, and highlighted this It is not guaranteed that conversations with CN will lead to a transaction.
Before CN proposal, it was The US Railroad has entered into a merger agreement with CPCP agreed to acquire KCS in a stock and cash deal of 275 per share, based on the two companies’ closing prices on March 19, 2021.
Both suggestions from Canadian companies are seeking to establish a seamless railway line between Mexico, the United States and Canada With the aim of benefiting from the flow of trade in the region after the signing of the trade agreement between the three countries.
For its part, National Canada welcomed the Kansas City Southern Board of Directors’ intention to review the proposed merger that could lead to a “superior proposition” company.
CN indicated that it sent 409 letters from interested parties supporting the transaction to the US authorities, from the Surface Transportation Board (“STB”), from customers to local governments, logistics service providers, short rail lines and railway providers.