© Reuters. FILE PHOTO: A wagon of a freight train of the Kansas City Southern (KCS) Railway Company is pictured in Toluca, Mexico October 1, 2018. REUTERS/Edgard Garrido/File Photo
By Ankit Ajmera
(Reuters) -Wall Street is expecting Canadian Pacific (NYSE:) to raise its offer for Kansas City Southern (NYSE:) even at the cost of more debt to win the bidding war with larger Canadian railroad rival Canadian National.
In the latest twist to the takeover saga, the U.S. railroad operator on Thursday accepted Canadian National’s $33.6 billion offer, leaving Canadian Pacific just five business days to make a new offer.
Analysts said Canadian Pacific was unlikely to let go a chance to be the first railway spanning the United States, Mexico and Canada easily even though it had said it would not leverage its books to outbid Canadian National.
“If CP is willing to compromise a bit more on the leverage ratio, it could…match or pote