By Micah Maidenberg

Canadian National Railway Co. said Tuesday it bid $33.7 billion in cash and stock to acquire Kansas City Southern, an offer it said was stronger than the one its Canadian rival offered for the firm.

Canadian National said its offer values shares of Kansas City Southern at $325 a share. The Wall Street Journal earlier Tuesday reported on Canadian National's efforts.

Last month, Canadian Pacific Railway Ltd. agreed to pay $275 a share, including $90 in cash, for Kansas City Southern, yielding a bid valued at about $25 billion.

Canadian National said its offer is 21% stronger than the implied value of the Canadian Pacific deal. Under its offer, shareholders in Kansas City Southern would receive $200 in cash and 1.059 shares of Canadian National common stock, the latter company said.

"We firmly believe our proposal is far superior to KCS' existing agreement with CP because it offers superior financial value over the immediate and long-term, a more complementary strategic fit, greater choice and efficiencies for customers and enhanced benefits for employees and local communities," Canadian National Chairman Robert Pace said.

Canadian National also said it believes expected earnings before interest, taxes, depreciation and amortization cost savings would approach $1 billion annually.

A significant proportion of those savings is "expected from converting truck traffic from busy interstates and highways for better fuel efficiency at a lower cost," the railroad said.

Write to Micah Maidenberg at micah.maidenberg@wsj.com

(END) Dow Jones Newswires

04-20-21 0745ET