• Kansas City Southern says its board has determined that the latest unsolicited proposal from Canadian Pacific Railway does not constitute a superior proposal, and reaffirms its support of a merger with Canadian National Railway.
• The company says it will wait for the U.S. Surface Transportation Board to make a ruling on the deal before a shareholder vote.
• Earlier this week, CP submitted a new $300/share offer that values KC Southern at $31B.
• Under the terms of the Canadian National deal, KC Southern shareholders would receive $200 in cash and 1.129 CN common shares for each KSU common share.
• The consensus view points to alikely rejection of the KSU-CNI deal by the STB.