Canadian National responds to Canadian Pacific's hostile bid for Kansas City Southern, calling it 'inferior'

Canadian National Railway Co. CNI, +0.15% CNR, -0.22% called rival Canadian Pacific Railway Co.'s CP, -0.85% CP, -1.52% new unsolicited buyout bid for Kansas City Southern KSU, +7.43% "inferior" to the presumption of the CN-KCS merger deal, contempt CP's telephone that its caller bid was "superior." CN noted that the merger woody that KCS agreed connected backmost successful May was valued astatine $33.6 billion, including debt, portion the bid CP submitted was valued astatine $31 billion. CP argued that a CP-KCS operation offers "significantly higher regulatory certainty" than a CN-KCS combination. CN responded by saying its merger woody is presently nether reappraisal by the Surface Transportation Board (STB), pursuing a remark play which resulted successful "overwhelming support" from customers, suppliers, elected officials, organized labor, section communities and stakeholders. "CN and KCS' agreed transaction remains superior and the champion enactment for some companies' stakeholders to present connected a operation that volition heighten contention and supply caller servicing options for customers," CN said successful a statement. CN shares roseate 0.4% successful greeting trading, CP's banal fell 1.0% and KCS shares rallied 7.8%. Meanwhile, the Dow Jones Transportation Average DJT, +1.76% ran up 1.2% and the Dow Jones Industrial Average DJIA, +0.33% tacked connected 72 points, oregon 0.2%.