Class I railway operator Kansas City Southern has rejected a bid from private equity investors Blackstone Group Inc and Global Infrastructure Partners, according to a Wednesday report from The Wall Street Journal.
With a market capitalization estimated to be over $17 billion, Kansas City Southern turned down the bid of $20 billion.
The railroad transportation holding company argues that the bid undervalues its worth, the current offer sitting at $208 per share.
As of Wednesday, Kansas City Southern is no longer in discussion with the two companies, according to The Wall Street Journal.
At an industry conference on Wednesday attended by Kansas City Southern, officials with the company said finances have improved following the onset of COVID-19, the company saying it expects 2020 earnings per share to be similar to 2019.