Shares of Kansas City Southern /zigman2/quotes/200211518/composite KSU +0.62% rose 0.6% in Friday morning trading, after the Missouri-based railroad company said it has terminated its merger agreement with Canadian Pacific Railway Ltd. /zigman2/quotes/204163517/composite CP +1.50% /zigman2/quotes/205690198/delayed CA:CP +1.46% , and will go with it determined was a "superior" bid from Canadian National Railway Co. /zigman2/quotes/203550968/composite CN -2.54% /zigman2/quotes/203746923/delayed CA:CNR +0.93% . As a result, Kansas City Southern will pay Canadian Pacific a $700 million breakup fee, which will be reimbursed by Canadian National. In March, Kansas City Southern had agreed to be acquired by Canadian Pacific (CP) in a deal valued at $25 billion, but then received a $33.7 billion buyout bid from Canadian National in April. Kansas City Southern said Friday that under terms of the Canadian National deal, its shareholders will receive $200 in cash and 1.129 Canadian National shares (CN) for each Kansas City Southern share (KSU) they own, which at current stock prices values KSU at $318.53 each. Meanwhile, shares of CN are down 1.3% in morning trading and CP are up 0.7%. KSU shares have now rallied 44.7% year to date, while the Dow Jones Transportation Average /zigman2/quotes/210598063/realtime DJT +0.69% has advanced 24.8% and the Dow Jones Industrial Average /zigman2/quotes/210598065/realtime DJIA +0.68% has gained 12.2%.