Canadian Pacific said near $25 billion Kansas City Southern deal

Canadian Pacific Railway Ltd. has offered to buy Kansas City Southern for $25 billion, according to a person familiar with the transaction.

The Calgary-based company has offered $275 a share in a cash and stock deal, said the person, who asked not to be named because the information isn’t yet public. A transaction may be announced as soon as Sunday, the person said.

The price represents a 23% premium to Friday’s close of $224.16, when the stock climbed to a record.

No filing has been posted with the U.S. Surface Transportation Board as of Friday, according to the regulator’s website. Representatives from both companies didn’t immediately return phone calls and emails seeking comment.

The transaction will give Canadian Pacific access to Kansas City, Missouri-based company’s sprawling Midwestern rail network that connects farms in Iowa to ports along the Gulf of Mexico.

In September, Dow Jones reported that Kansas City Southern rejected a $20 billion offer from Blackstone Group Inc. and Global Infrastructure Partners.

The Financial Times earlier reported the offer by Canadian Pacific.

Shares of Kansas City Southern have jumped 9.8% this year, more than twice the gain of the S&P 500 Index. Canadian Pacific, which rose to a record Thursday, climbed 7.4% for the year.