Skip to main content
A scary good deal on trusted journalism
Get full digital access to globeandmail.com
$0.99
per week for 24 weeks SAVE OVER $140
OFFER ENDS OCTOBER 31
A scary good deal on trusted journalism
$0.99
per week
for 24 weeks
SAVE OVER $140
OFFER ENDS OCTOBER 31
// //

Kansas City Southern has agreed to re-engage with Canadian Pacific Railway Ltd. on CP's merger proposal after a rival bid from CN was blocked by the U.S. transportation regulator.

Ryan Remiorz/The Canadian Press

Kansas City Southern has agreed to re-engage with Canadian Pacific Railway Ltd. after the U.S. transportation regulator placed a roadblock in the path of the bid from rival Canadian National Railway Co.

The U.S. railway says its board of directors unanimously determined that CP’s unsolicited proposal worth about US$31-billion including debt could “reasonably be expected to lead to it becoming a superior proposal” to CN’s bid, worth about US$33.6-billion including debt.

Canadian National Railway investor TCI says it’s marshalling support among shareholders to unseat top executives

KCS intends to provide CP with non-public information and to engage in discussions and negotiations with the Calgary-based railway.

Story continues below advertisement

Kansas City Southern says it remains bound by the terms of the CN merger agreement and has not determined that CP’s proposal is in fact superior.

CP Rail, which has given a deadline of Sept. 12 for KCS to consider its offer, says it looks forward to re-engaging with KCS.

The U.S. Surface Transportation Board unanimously rejected CN and KCS’s joint motion for approval for use of a voting trust, something it approved for CP.

Your time is valuable. Have the Top Business Headlines newsletter conveniently delivered to your inbox in the morning or evening. Sign up today.

Your Globe

Build your personal news feed

  1. Follow topics and authors relevant to your reading interests.
  2. Check your Following feed daily, and never miss an article. Access your Following feed from your account menu at the top right corner of every page.

Follow topics related to this article:

View more suggestions in Following Read more about following topics and authors
Report an error
Due to technical reasons, we have temporarily removed commenting from our articles. We hope to have this fixed soon. Thank you for your patience. If you are looking to give feedback on our new site, please send it along to feedback@globeandmail.com. If you want to write a letter to the editor, please forward to letters@globeandmail.com.

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff.

We aim to create a safe and valuable space for discussion and debate. That means:

  • Treat others as you wish to be treated
  • Criticize ideas, not people
  • Stay on topic
  • Avoid the use of toxic and offensive language
  • Flag bad behaviour

If you do not see your comment posted immediately, it is being reviewed by the moderation team and may appear shortly, generally within an hour.

We aim to have all comments reviewed in a timely manner.

Comments that violate our community guidelines will not be posted.

UPDATED: Read our community guidelines here

Discussion loading ...

To view this site properly, enable cookies in your browser. Read our privacy policy to learn more.
How to enable cookies