(Reuters) - Kansas City Southern said on Saturday it will initiate talks with Canadian Pacific Railway Ltd because CP’s unsolicited proposal to acquire it could reasonably be expected to lead to a better proposal than one made by Canadian National Railway.
Kansas City Southern intends to provide Canadian Pacific with nonpublic information, the company said in a news release.
Canadian Pacific welcomed the board’s decision.
Kansas City Southern on Wednesday pushed back a vote on its proposed $29 billion sale to Canadian National Railway as financial investors bet a decision by the U.S. Surface Transportation Board had derailed the deal.
Canadian Pacific Railway said it would not be as willing to stick to its own $300 per share offer, worth $27 billion, after a Sept. 12 deadline.
There can be no assurance that the discussions with Canadian Pacific will result in a transaction, Kansas City Southern said in the press release.
Reporting by Maria Ponnezhath in Bengaluru; Editing by Steve Orlofsky and Sonya Hepinstall
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