Canadian Pacific Railway (CP) is reportedly planning to make a new, increased offer to buy Kansas City Southern (KCS), which would be higher than its previous offer but less than the one proposed by Canadian National Railway (CN).

In the recent board meeting, CP sanctioned an offer of roughly $300 per share from its initial offer of $275, amounting to nearly $27bn, reported the Wall Street Journal, citing people familiar with matter.

This development comes months after CP rejected to increase its bid for KCS.

US-based KCS had then termed CN’s offer as ‘superior’.

In March this year, CP agreed to acquire KCS in a cash and stock deal worth approximately $29bn, which included a $3.8bn assumption of outstanding KCS debt.

After receiving final approval from the US Surface Transportation Board (STB), the transaction would have resulted in the merger of the two railroads in Kansas City, Missouri, to form a rail network linking the US, Mexico and Canada.

Later in May, CN and KCS signed a definitive merger agreement to establish an express route linking the US, Mexico, and Canada under single ownership.

This agreement was valued at almost $33.6bn, with the total transaction value including the assumption of almost $3.8bn of KCS debt.

Prior to this, the STB had rejected a plan proposed by CN to establish a voting trust that would buy and own KCS while the deal was being reviewed by the regulator.

CP recently asked KCS’ shareholders to vote against the proposed merger of KCS and CN at a meeting to be held on 19 August.

CP submitted its proxy statement in order for CN’s proposed acquisition to be settled once KCS’s stockholders have access to more information.