Kansas City Southern suitor's bid in jeopardy after ruling

Canadian National’s $33.6 billion deal to acquire Kansas City Southern railroad is in jeopardy

OMAHA, Neb. -- Canadian National’s $33.6 billion deal to acquire Kansas City Southern railroad is in jeopardy after federal regulators on Tuesday rejected a key part of the plan and opened the door for a competing $31 billion offer from Canadian Pacific Railway. The Surface Transportation Board said Canadian National won’t be able to use a voting trust to acquire Kansas City Southern and hold the railroad while the board reviews the overall deal. It wasn’t immediately clear whether Kansas City Southern will still want to move forward with the deal without a voting trust that would allow shareholders to get paid before the regulatory board embarks on its lengthy review of the deal. Plus, Kansas City Southern is now free to accept CP’s offer, which already has regulatory approval to move forward. Kansas City Southern and Canadian National railroads didn't immediately react publicly to the ruling Tuesday