OMAHA, Neb. -- Kansas City Southern is in talks with Canadian Pacific to determine whether its $31 billion bid for the railroad is the best offer on the table after regulators rejected a key part of Canadian National's $33.6 billion bid last week.
Kansas City Southern said Saturday that its board believes Canadian Pacific's lower offer could be the better deal. That would be because the Surface Transportation Board said Canadian National won't be able to use a voting trust to acquire Kansas City Southern and then hold the railroad during the board's lengthy review of the overall deal.
In contrast, regulators already have approved Canadian Pacific's use of a voting trust because there are fewer competitive concerns about combining Canadian Pacific and Kansas City Southern. So there is a clearer path forward for that deal, although it still would face a detailed review from the Surface Transportation Board.
Canadian Pacific and Kansas City Southern have all week to work out their differences, but Canadian Pacific has put a Sunday deadline on its latest offer.
![FILE - In this March 29, 2018 file photo, a Canadian National Rail locomotive moves through the rail yard in Dartmouth, Nova Scotia. Kansas City Southern is in talks with Canadian Pacific, Saturday, Sept. 4, 2021, to determine whether its $31 billion bid is the best offer on the table after regulators rejected a key part of Canadian National’s $33.6 billion offer last week. (Andrew Vaughan/The Canadian Press via AP)]()
FILE - In this March 29, 2018 file photo, a Canadian National Rail locomotive moves through the rail yard in Dartmouth, Nova Scotia. Kansas City Southern is in talks with Canadian Pacific, Saturday, Sept. 4, 2021, to determine whether its $31 billion bid is the best offer on the table after regulators rejected a key part of Canadian National’s $33.6 billion offer last week. (Andrew Vaughan/The Canadian Press via AP)
![FILE - In this Nov. 5, 2004, file photo, the logo of Kansas City Southern is down on a restored 1954 Kansas City Southern passenger locomotive at Union Station in Kansas City, Mo. Kansas City Southern railroad is trying to keep its $33.6 billion merger with Canadian National on track by rejecting a competing $31 billion bid from rival Canadian Pacific earlier this week. Kansas City Southern said Thursday, Aug. 12, 2021, that its board unanimously decided to continue backing Canadian National's higher offer. .(Norman Ng/The Kansas City Star via AP, File)]()
FILE - In this Nov. 5, 2004, file photo, the logo of Kansas City Southern is down on a restored 1954 Kansas City Southern passenger locomotive at Union Station in Kansas City, Mo. Kansas City Southern railroad is trying to keep its $33.6 billion merger with Canadian National on track by rejecting a competing $31 billion bid from rival Canadian Pacific earlier this week. Kansas City Southern said Thursday, Aug. 12, 2021, that its board unanimously decided to continue backing Canadian National's higher offer. .(Norman Ng/The Kansas City Star via AP, File)
![FILE - In this May 23, 2012, file photo, surveyors work next to Canadian Pacific Rail trains which are parked on the train tracks in Toronto. A planned shareholder vote on Canadian National's $33.6 billion offer has been delayed, Wednesday, Sept. 1, 2021, after regulators rejected a key part of the plan, so now Kansas City Southern can consider all of its options, including a competing $31 billion offer from Canadian Pacific Railway. (Nathan Denette/The Canadian Press via AP, File)]()
FILE - In this May 23, 2012, file photo, surveyors work next to Canadian Pacific Rail trains which are parked on the train tracks in Toronto. A planned shareholder vote on Canadian National's $33.6 billion offer has been delayed, Wednesday, Sept. 1, 2021, after regulators rejected a key part of the plan, so now Kansas City Southern can consider all of its options, including a competing $31 billion offer from Canadian Pacific Railway. (Nathan Denette/The Canadian Press via AP, File)
