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Deals

Kansas City Southern rejects $20 billion takeover bid from investor group: WSJ

FILE PHOTO: A logo of the Kansas City Southern (KCS) Railway Company is pictured in Toluca, Mexico October 1, 2018. REUTERS/Edgard Garrido/File Photo

(Reuters) - U.S. railroad operator Kansas City Southern KSU.N has rejected a $20 billion takeover offer from an investor group, the Wall Street Journal reported on Wednesday, citing people familiar with the matter.

The buyout consortium led by Blackstone Group Inc BX.N and Global Infrastructure Partners had offered Kansas City Southern $208 a share, which the company rejected, saying it undervalued the firm, according to the report on.wsj.com/3jYJCNJ.

Kansas City Southern, with market capitalization over $17 billion, did not immediately respond to Reuters request for comment.

Shares of the railroad company were up 1.5% after the bell.

Reporting by Shradha Singh in Bengaluru; Editing by Krishna Chandra Eluri

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