North America - Railroad operator KCS on Sunday scrapped a US$30 billion deal with CN, opting instead for a lower offer from CP worth US$27 billion which may face fewer regulatory hurdles.
 
KCS said it had notified CN that it intended to terminate their merger agreement and that CN will have five business days to make a fresh bid.
 
CN is entitled to a $1.4 billion termination fee.
 
Of this, US$700 million was already paid to CP when CN trumped its earlier bid and would be returned.
 
CP has said previously it would cover the remaining US$700 million that would need to be paid to CN.
 
Joshua Franklin.