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Merger Arbitrage Mondays – Kansas City Southern Pays A Huge Fee To Walk Away

  • September 20, 2021

Merger activity increased last week with five new deals announced, two deals completed and one terminated.

Kansas City Southern (KSU) has now managed to leave both its suitors, Canadian National Railway (CNI) and Canadian Pacific Railway (CP), at the altar once each. Under regulatory pressure, KCS terminated its alliance with Canadian National Railway Company (CNI) and once again entered into a merger agreement to be acquired by Canadian Pacific Railway Limited (CP). In connection with the termination of the CN merger agreement, KCS has to pay CN a huge breakup fee of $1.4 billion. This termination fee includes $700 million for walking away from the CN deal and an additional $700 million to return the $700 million previously paid by CN to KCS to reimburse the termination fee paid to CP in May.

You can find all the active deals listed below in our Merger Arbitrage Tool (MAT) that automatically updates itself during market hours.

Potential deals continued to increase last week with three new deals announced in the Deals in the Works section last week.

SPAC Arbitrage

There were 7 SPAC IPOs filed and 3 new SPAC business combinations announced last week. You can find the new SPAC IPO announcements in our SPACs tool here.

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