<p>A bidding war is breaking out for Kansas City Southern, with Canadian National Railway making a $33.7 billion cash-and-stock offer for the railway.</p>
<p>The bid trumps a $25 billion cash-and-stock proposal made by <a href="https://apnews.com/article/business-mexico-united-states-13c9e51c29015d9bca082cb6c0cf29b2">Canadian Pacific </a> last month. </p>
<p>Shares of Kansas City Southern jumped more than 18% in Tuesday premarket trading. CN’s stock fell 9%. Shares of Canadian Pacific Railway Ltd. rose 2.6%.</p>
<p>CN said its offer is worth $325 per Kansas City Southern share. Kansas City Southern shareholders would receive $200 in cash and 1.059 shares of CN common stock for each share. The transaction would include about $3.8 billion in Kansas City Southern debt. </p>
<p> If the two companies were to combine, it would create a business connecting ports and rails in the U.S., Mexico and Canada.</p>
<p>“CN and Kansas City Southern have highly complementary networks with limited overlap that will enable them to accelerate growth in single-owner, single-operator, end-to-end service across North America," CN President and CEO JJ Ruest said in a statement. </p>
<p>In contrast, Canadian Pacific said its proposed deal would create a combined company that would operate about 20,000 miles of railway, employ 20,000 people and generate annual revenue of about $8.7 billion. </p>
<p>A representative for Kansas City Southern didn’t immediately respond to an email seeking comment. </p>
