Kansas City Southern rejects new bid from Canadian Pacific

By JOSH FUNK
AP Business Writer

OMAHA, Neb. (AP) — Kansas City Southern railroad is trying to keep its $33.6 billion merger with Canadian National on track by rejecting a competing $31 billion bid from rival Canadian Pacific earlier this week. Kansas City Southern said Thursday that its board unanimously decided to continue backing Canadian National’s higher offer. KCS shareholders are scheduled to vote whether to accept CN’s offer on Aug. 19, but the U.S. railroad said it may now delay that vote if the U.S. Surface Transportation Board doesn’t issue its decision on a key part of Canadian National’s acquisition plan before Tuesday. The STB said earlier this week that it expects to issue its ruling on CN’s proposal by August 31.