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A Canadian Pacific train leaves the company's railyard in Calgary, AB on Aug. 8, 2021.Gavin John/The Globe and Mail

Kansas City Southern said on Thursday its board determined that the unsolicited proposal received from Canadian Pacific Railway does not constitute a “superior proposal” to its agreement with Canadian National Railway Co.

CP Rail presented a new US$27-billion offer for U.S. peer Kansas City Southern on Tuesday, lower than a US$29-billion rival bid from CN Rail, hoping antitrust concerns over the latter will give it an edge.

Kansas City said it continues to recommend shareholders vote for its proposed deal with CN Rail.

CP Rail chief executive Keith Creel had refused to raise his previous US$25-billion bid for Kansas City after losing to CN Rail in May, arguing that the deal that Kansas City had chosen to pursue was “not a real deal” because the Surface Transportation Board (STB), the American rail regulator, would shoot it down.

The STB has yet to rule on the proposed “voting trust” structure of that transaction. KSU has scheduled a special meeting of its stockholders on Aug. 19 to vote on the merger agreement with CN and other proposals.

KSU added if the STB does not release a public decision by Aug. 17, the special meeting will be adjourned to give all shareholders and the board time to receive and consider the STB decision.

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This content appears as provided to The Globe by the originating wire service. It has not been edited by Globe staff.

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