(Reuters) -Kansas City Southern said on Sunday it has received a revised proposal from Canadian Pacific, which the board determined was superior to the offer from Canadian National Railway.
Under the terms of Canadian Pacific’s revised proposal, each share of Kansas City Southern common stock would be exchanged for 2.884 common shares of Canadian Pacific and $90 in cash, a statement said.
The statement added that the proposal is binding on Canadian Pacific and may be accepted by Kansas City Southern at any time prior to 5 p.m. EDT (2100 GMT) on Sept. 20.
Kansas City has told Canadian National that it intends to terminate its agreement with the company and enter a definitive agreement with Canadian Pacific.
Canadian National has five days to revise its offer. The company was not immediately available for comment outside of normal business hours.
Canadian Pacific Railway had earlier said it would not be as willing to stick to its own $300 per share offer, worth $27 billion, after a Sept. 12 deadline.
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