I’ve been following this merger since March when it was reported that talks between Canadian Pacific and Kansas City Southern were occurring. I find the bidding war dynamics to be very interesting given the lack of significant players in the railroad industry. Do you think there is value in CN overpaying to ensure that KSU does not end up in the hands of its competitor? What is your next move now if you are CP?
Interesting case to follow! Thanks for highlighting it. I believe CP or CN can increase their bids as long as they are anticipating value from synergies or any other improvements will be created once one of the firms acquires KCS. CP or CN should not offer higher than the maximum price in which at least value would equal zero to protect their shareholders.
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.