Loop Capital analyst Rick Paterson downgraded Canadian Pacific Railway to Hold from Buy with a C$340 price target.

The major averages moved lower for a second straight session amid a fresh round of risk-off sentiment driven by a resurgence in worries over the virus that have caused jitters about the global recovery outlook. Profit taking also... To see the rest of the story go to thefly.com. See Story Here

Kansas City Southern (KSU) announced that it has received an unsolicited proposal from Canadian National Railway (CNI) to acquire KCS in a cash and stock transaction valued by CN at $325 per KCS share. On March 21, 2021, KCS announced that it had entered into a merger agreement with Canadian Pacific Railway Limited (CP), pursuant to which CP agreed to acquire KCS in a stock and cash transaction valued at $275 per KCS share based on the CP and KCS closing prices on March 19, 2021. The transaction is subject to customary closing conditions including receipt of regulatory approvals and the approval of CP and KCS shareholders. The KCS board of directors will evaluate CN's proposal in accordance with the terms of KCS' merger agreement with CP, and will respond in due course. The KCS board of directors has not made any determination with respect to CN's proposal at this time. BofA Securities and Morgan Stanley & Co. LLC are serving as financial advisors to Kansas City Southern. Wachtell, Lipton, Rosen & Katz, Baker & Miller PLLC, Davies Ward Phillips & Vineberg LLP, WilmerHale, and White & Case, S.C. are serving as legal counsel to Kansas City Southern.

The major averages are weaker at midday as a fresh round of risk-off sentiment is rolling across equity markets globally amid a resurgence in worries over the virus that have caused jitters about the global recovery outlook. Profit taking also... To see the rest of the story go to thefly.com. See Story Here

Check out this morning's top movers from around Wall Street, compiled by The Fly.  HIGHER - Kansas... To see the rest of the story go to thefly.com. See Story Here

CN (CNI) announced that it has made a "superior proposal" to combine with Kansas City Southern (KSU) in a cash-and-stock transaction valued at $33.7B, or $325 per share. Under the terms of the proposal made to KCS' Board of Directors, following closing into a voting trust, KCS shareholders will receive $200 in cash and 1.059 shares of CN common stock for each KCS common share. Based on yesterday's closing price of CN shares, CN's proposal is valued at $325 per KCS share. This represents an implied premium of 45% when compared to KCS' unaffected closing stock price on March 19, 2021 and an 21% improvement over the current value of KCS' agreement with Canadian Pacific Railway Limited (CP) With greater than two-times more cash consideration, CN's superior proposal delivers greater value and certainty to KCS shareholders, as well as participation in the significant upside of the combined company. CN currently estimates that the combination would result in EBITDA synergies approaching $1B annually, with the vast majority of synergies coming from additional revenue opportunities. CN anticipates the transaction to be accretive to CN's adjusted diluted earnings per share2 in the first full year following CN assuming control of KCS. "CN is ideally positioned to combine with KCS to create a company with broader reach and greater scale, and to seamlessly connect more customers to rail hubs and ports in the U.S., Mexico and Canada. CN and KCS 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. With safer service and better fuel efficiency on key routes from Mexico through the heartland of America, the result will be a safer, faster, cleaner and stronger railway," said JJ Ruest, president and CEO of CN.