Shareholder urges bid to be abandoned for Kansas City Southern railroad

A major Canadian National shareholder is urging the railroad to abandon its $33.6 billion bid to buy Kansas City Southern after regulators dealt the deal a procedural setback this week. 

The TCI investment fund owns nearly 3% of CN’s stock. 

It said Tuesday that there is too much uncertainty about whether U.S. regulators will approve the deal to continue. 

TCI does have a potential conflict of interest in the dispute because it is also the largest shareholder in Canadian Pacific railroad, which has made a rival $25 billion offer to buy Kansas City Southern. 

Canadian Pacific has until the end of Thursday to respond to Canadian National’s offer, although it has said it doesn’t plan to engage in a bidding war.