Canadian National decided not to improve its offer to merge with Kansas City Southern
Canadian National Railway Co (NYSE:CNI) has announced that it will not improve its offer to acquire Kansas City Southern (KSU), after the company chose Canadian Pacific's (CP) $31 billion rival bid on Sunday, Sept. 12. Canadian National had until Friday to amend its $29.6 billion offer, but was under pressure from investors to scrap the deal amid regulatory concerns. At last check, CNI was up 3.4% to trade at $118.79.
The stock is fresh off six straight sessions in the red, following its Sept. 3 record high of $128.41, with yesterday's pullback nearing the ascending 20-day moving average at the $114 level. Year-to-date, the equity was up 4.6% heading into today.
Of the 19 analysts in coverage, 11 sport a tepid "hold" rating on Canadian National stock, with eight a "buy" or better. It's worth noting that yesterday, TD Securities downgraded the stock to "hold" from "buy," citing the equity's recent gains. Meanwhile, the 12-month consensus price target of $120.74 is a 5.1% premium to last night's close.