Canadian Pacific Kansas City Limited Stock Price, News & Analysis

Canadian Pacific (TSX: CP) will announce its third-quarter 2021 financial results on Oct. 20, 2021, at 7:30 a.m. ET. A conference call for results discussion will follow at 8 a.m. ET.

Participants can join by calling 1-416-764-8688 or 1-888-390-0546 toll-free. Access the webcast on CP's investor website.

A replay will be available until Oct. 27, 2021, at 416-764-8677 or 1-888-390-0541 with password 549569.

Canadian Pacific Railway and Kansas City Southern have entered a merger agreement valued at approximately $31 billion, including $3.8 billion of KCS debt. The deal offers KCS shareholders a premium of 34%, valuing shares at $300. The merged entity is set to enhance competition and provide new transportation options across North America, with expected annualized synergies of $1 billion within three years. The transaction is supported by both boards and over 1,000 stakeholders, with an anticipated closure by Q1 2022.

Canadian Pacific Railway has entered into a $31 billion merger agreement to acquire Kansas City Southern, including the assumption of $3.8 billion in debt. The deal is supported by both companies' boards and offers KCS shareholders a 34% premium at $300 per share. With plans for $1 billion in annualized synergies within three years, the merged entity aims to enhance rail service options across North America. The transaction will create the first single-line rail network linking the U.S., Mexico, and Canada, significantly expanding market reach and operational efficiencies.

Kansas City Southern (NYSE: KSU) announced its Board's determination that the acquisition proposal from Canadian Pacific Railway (TSX: CP, NYSE: CP) as of September 12, 2021, is a "Company Superior Proposal". Consequently, KCS terminated its existing merger agreement with Canadian National Railway (TSX: CNI, NYSE: CNI). The new CP merger terms include $90 in cash and 2.884 CP shares for each KCS common stockholder, and $37.50 in cash for preferred stockholders. KCS will pay a $700 million breakup fee to CN, which will be reimbursed by CP upon closing, subject to shareholder and regulatory approvals.

Canadian Pacific Railway Limited (TSX: CP) announced a significant milestone in pursuing a merger with Kansas City Southern (KCS), deemed a 'Company Superior Proposal' by KCS's Board. The merger values KCS at $300 per share, a 34% premium, and includes the assumption of $3.8 billion in KCS debt. The merger aims to enhance competition within North American railways by creating single-line routes, particularly benefiting markets in the Midwest and the Gulf Coast. CP remains committed to making this merger a successful reality.

Canadian Pacific Railway Limited (TSX: CP) (NYSE: CP) is poised to re-engage with the Kansas City Board of Directors after its offer was deemed likely to lead to a "Company Superior Proposal." CP's offer, valuing Kansas City Southern (KCS) at $300 per share, represents a 34% premium. The Surface Transportation Board has also approved CP's use of a voting trust, enhancing regulatory certainty. CP-KCS aims to create a competitive freight rail network, improving service and market access while preserving the existing structure of North America's rail industry.

Kansas City Southern (KCS) announced that its Board of Directors is engaging in discussions with Canadian Pacific Railway (CP) regarding CP's unsolicited acquisition proposal valued at $300 per KCS share. This proposal could potentially be deemed a "Company Superior Proposal" under KCS’s merger agreement with Canadian National Railway (CNI), which offers $325 per share. However, KCS remains bound by the CN merger agreement and asserts no assurance of a finalized transaction with CP.

Kansas City Southern (KSU) announced an unsolicited acquisition proposal from Canadian Pacific Railway (CP), reiterating terms similar to a previous proposal made on August 10, 2021. The offer includes 2.884 shares of CP and $90 in cash for each KCS common share, with preferred stockholders receiving $37.50 in cash. The KCS Board will evaluate this proposal in light of its existing agreement with CN, which offers $325 per share of KCS stock. Financial advisors involved are BofA Securities and Morgan Stanley, with multiple legal counsels aiding KCS.

Canadian Pacific Railway (CP) announced that the Surface Transportation Board (STB) rejected the Canadian National (CN) and Kansas City Southern (KCS) merger proposal, affirming CP's position that the CN-KCS combination is unachievable. CP's offer to acquire KCS, made on August 10, 2021, remains on the table, emphasizing both regulatory certainty and competitive benefits. The STB's decision indicates a preference for the CP-KCS merger, which is expected to enhance competition and provide substantial value to KCS shareholders. A KCS stockholder meeting is set for September 3, 2021.