Kansas City Southern plans to accept Canadian Pacific's US$27 bln bid

Canadian National now has until the end of Friday to submit a better offer or lose its deal with Kansas City Southern. At stake is the creation of the first direct railway linking Canada, the United States and Mexico. FILE PHOTO: A freight train of the Kansas City Southern (KCS) Railway Company is pictured in Toluca, Mexico -Reuters

Kansas City Southern said on Sunday it planned to accept Canadian Pacific Railway Ltd's $27.2 billion cash-and-stock acquisition offer as superior to its US$29.6 billion deal to sell itself to Canadian National Railway Ltd.

Canadian National now has until the end of Friday to submit a better offer or lose its deal with Kansas City Southern. At stake is the creation of the first direct railway linking Canada, the United States and Mexico.