© Reuters. FILE PHOTO: A Kansas City Southern Railroad Company (KCS) freight wagon is pictured in Toluca, Mexico October 1, 2018. REUTERS / Edgard Garrido / File Photo
(Reuters) -Kansas City Southern said on Sunday it had received a revised proposal from Canadian Pacific (NYSE:), which the board determined was superior to the offer from Canadian National Railways (TSX:).
Under the terms of Canadian Pacific’s proposed amendment, each share of Kansas City Southern common stock (NYSE:) would be exchanged for 2,884 shares of Canadian Pacific common stock and $90 in cash, a statement said. know.
The statement added that the proposal is binding on Canada Pacific and could be accepted by Kansas City Southern any time before 5 p.m. EDT (2100 GMT) on September 20.
Kansas City has told Canadian National that it intends to terminate the agreement with the company and sign a definitive agreement with Canadian Pacific.
Country Canada has five days to amend its offer. The company is not immediately available for comment outside of normal business hours.
Canada’s Pacific Railway earlier said it would not be willing to follow through on its own $300-per-share, $27 billion offer, after the September 12 deadline.
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