KSU - Canadian National expected to tempt Kansas City Southern with better offer

Canadian National Railway ([[CNI]] +0.6%) is likely to increase its takeover bid for Kansas City Southern ([[KSU]] +1.7%), sources tell The Wall Street Journal. Importantly, the new proposal could include covering the $700M breakup fee that Canadian Pacific Railway ([[CP]] +1.5%) lands if KSU walks away from merger agreement already in place. The publication thinks that deal sweetener could be enough for Kansas City Southern to pull the switch in favor of Canadian National Railway, Sector watch: Kansas City Southern has broken higher after the WSJ report. Kansas City Southern, as well as Canadian Pacific and Canadian National Railway have bounced up and down off merger speculation for a few weeks.

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Canadian National expected to tempt Kansas City Southern with better offer