Canadian Pacific (NYSE: CP) has submitted a new, sweetened bid for Kansas City Southern (NYSE: KSU) in a last-minute attempt to derail KCS's planned sale to Canadian National (NYSE: CNI) .
The new CP bid, which values the target at about $31 billion, is still less than the $33 billion Canadian National deal price. But given the regulatory uncertainty surrounding the Canadian National/Kansas City Southern tie-up, price isn't everything. The Canadian Pacific offer is likely high enough to get the attention of some KCS investors, setting up a dramatic finish to this takeover saga.
The bidding war for Kansas City Southern became public back in March, when KCS announced it had agreed to be acquired by Canadian Pacific for $29 billion. The deal would have been the largest ever between two railroads and would be the first challenge to a moratorium on consolidation put in place by regulators back in 2000.
For further details see:
A Rival Might Knock This Railroad Merger Off Track