Canadian National offers more than $30 billion for Kansas City

[April 20, 2021]  (Reuters) -Canadian National Railway Co said it had offered $33.7 billion for railroad operator Kansas City Southern, trumping last month's offer from rival Canadian Pacific and sending the U.S. railroad operator's shares up 21%.

A wagon of a freight train of the Kansas City Southern (KCS) Railway Company is pictured in Toluca, Mexico October 1, 2018. REUTERS/Edgard Garrido

Canadian National's offer of $325 per shares represents a premium of 26.8% to Kansas City Southern's last close on Monday.

CN's offer includes $200 a share in cash and 1.059 Canadian National shares.

Last month, Canadian Pacific agreed to acquire Kansas City in a $25 billion cash-and-stock deal to create the first railway spanning the United States, Mexico and Canada, standing to benefit from a pick-up in trade.

(Reporting by Shreyasee Raj; Editing by Shinjini Ganguli)

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