Kansas City Southern said a recent takeover offer from Canadian Pacific Railway Ltd. is superior to one it already accepted from Canadian National Railway Co. in the latest twist in a hotly contested battle for the railroad.
As set out in the terms of its existing agreement with Kansas City Southern, Canadian National now has five business days to improve its offer to avoid termination of the deal. It could also choose to walk away—and receive a $700 million breakup fee and reimbursement for a similar fee it previously covered.
