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U.S. regulator says merger waiver applies to CP but KSC board says CN offer 'superior'

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The competing bids for U.S. railway Kansas City Southern each received a boost with the U.S. regulator saying a 2001 merger waiver applies to Canadian Pacific Railway, while KCS's board says CN Rail's proposal could lead to a superior proposal.

The U.S. Surface Transportation Board recently said that a merger between CP and KCS would result in the fewest overlapping routes compared with any other Class l railroad.

KCS says its decision to engage in discussions and negotiations with CN is warranted considering the financially superior offer.

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