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May 21, 2021, 11:21 a.m. EDT

Kansas City Southern to merge with Canadian National, paid Canadian Pacific $700 million breakup fee

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By Tomi Kilgore

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%.

/zigman2/quotes/200211518/composite
US : U.S.: NYSE
$ 271.40
+1.66 +0.62%
Volume: 335,035
July 23, 2021 4:00p
P/E Ratio
205.73
Dividend Yield
0.80%
Market Cap
$24.69 billion
Rev. per Employee
$403,649
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/zigman2/quotes/204163517/composite
US : U.S.: NYSE
$ 73.89
+1.09 +1.50%
Volume: 1.83M
July 23, 2021 4:00p
P/E Ratio
24.98
Dividend Yield
0.85%
Market Cap
$49.15 billion
Rev. per Employee
$483,444
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/zigman2/quotes/205690198/delayed
CA : Canada: Toronto
$ 92.81
+1.34 +1.46%
Volume: 857,454
July 23, 2021 4:00p
P/E Ratio
23.78
Dividend Yield
0.82%
Market Cap
$61.87 billion
Rev. per Employee
$648,444
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/zigman2/quotes/203550968/composite
US : U.S.: NYSE Arca
$ 43.63
-1.14 -2.54%
Volume: 402.00
July 23, 2021 4:10p
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/zigman2/quotes/203746923/delayed
CA : Canada: Toronto
$ 132.99
+1.22 +0.93%
Volume: 1.10M
July 23, 2021 4:18p
P/E Ratio
23.61
Dividend Yield
1.85%
Market Cap
$94.14 billion
Rev. per Employee
$566,794
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/zigman2/quotes/210598063/realtime
US : Dow Jones Indices
14,756.07
+101.43 +0.69%
Volume: 86.47M
July 23, 2021 5:16p
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/zigman2/quotes/210598065/realtime
US : Dow Jones Global
35,061.55
+238.20 +0.68%
Volume: 315.06M
July 23, 2021 5:16p
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