Topic: How To Invest

The Successful Investor Hotline – Friday, August 13, 2021

Article Excerpt

CANADIAN PACIFIC RAILWAY LTD., $90.82, Toronto symbol CP, is still our #1 Conservative Buy for 2021. CP ships freight over a 22,000-kilometre rail network between Montreal and Vancouver. It also links to hubs in the U.S. Midwest and Northeast. This week, the company announced a new takeover offer for U.S.-based railway Kansas City Southern (New York symbol KSU). Under the terms of this new bid, KCS investors will receive 2.884 CP common shares plus $90.00 U.S. in cash for each share held. If you include KCS’ debt, the entire offer is worth $31 billion U.S. That’s equal to 64% of CP’s current market cap (the total value of all outstanding shares) of $60.6 billion (Canadian). Based on current prices, CP’s offer is worth $299.26 U.S. per KCS share, which is above KCS’ current trading price of $292.73 U.S. That’s because CP’s new bid falls short of a rival offer from CANADIAN NATIONAL RAILWAY CO., $134.50, Toronto symbol CNR, which also remains a buy. CN is offering $200.00…