By Robb M. Stewart
Kansas City Southern's shares rallied Tuesday on the prospect of a bidding war after Canadian National Railway Co. made a roughly $30 billion offer that challenges an agreed sale to its Canadian rival.
In morning trading, Kansas City's shares were 16% higher at $296.30. They are up 45% so far in 2021, and have more than doubled over the past 12 months.
CN's shares were down 6.8% at C$138.17, while rival Canadian Pacific Railway Ltd.'s were 0.3% lower at C$456.65.
CN said it is offering $325 for each share of Kansas City Southern, including $200 a share in cash and 1.059 CN shares. Its bid represents a 21% premium to CP's agreement to pay $275 a share, including $90 in cash, in a roughly $25 billion deal reached last month.
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(END) Dow Jones Newswires