Intermodal

• Stock and cash transaction represents an enterprise value of approximately $31 billion • Expected to create annualized synergies of approximately $1 billion within 3 years • Historic combination enhances competition, creates new options for customers and supports economic growth in North America

Kansas City Southern said it’s backing out of a merger agreement with Canadian National Railway Co. and plans to accept a competing offer from Canadian Pacific Railway Ltd., the latest step in the fight over which railroad would become the first to operate in Canada, the U.S. and Mexico.

One of Canadian National Railway Co.’s largest shareholders formally started a proxy fight to replace the company’s leader and some board members, arguing that their failed attempt to buy Kansas City Southern for $30 billion demonstrated “flawed decision making.”