Kansas City Southern rejects $20 billion takeover bid from investor group, WSJ reports

Kansas City Southern freight train
Source: Kansas City Southern

U.S. railroad operator Kansas City Southern has rejected a $20 billion takeover offer from an investor group, The Wall Street Journal reported on Wednesday, citing people familiar with the matter.

The buyout consortium led by Blackstone and Global Infrastructure Partners had offered Kansas City Southern $208 a share, which the company rejected, saying it undervalued the firm, according to the report.

Kansas City Southern, with market capitalization over $17 billion, did not immediately respond to Reuters request for comment.

Shares of the railroad company were up 1.5% after the bell.