Kansas City Southern in talks on dueling rail takeover bids

As deal talks begin, Canadian National railroad says it is receiving broad support for its $33.7 billion bid to buy Kansas City Southern

OMAHA, Neb. -- As deal talks begin, Canadian National railroad says it is receiving broad support for its $33.7 billion bid to buy Kansas City Southern. Canadian National said Monday that more than 400 shippers and other stakeholders have submitted letters supporting its offer, including some who previously supported Canadian Pacific's $25 billion bid to buy Kansas City Southern. That's similar to the level of support Canadian Pacific says it has received for its offer. On Saturday, Kansas City Southern said it would negotiate with CN about its unsolicited offer because it “could reasonably be expected” to be considered a superior proposal although KCS' board hasn't yet determined that it is. Both proposed deals are designed to capitalize on expanding trade between the United States, Canada and Mexico under the new trade pact signed last year “Together, CN and KCS will connect North America in a safer, faster, cleaner and stronger way for the benefit of both companies’ stakeholders,” Canadian National's CEO JJ Ruest said.