In the latest development pertaining to the takeover of the Kansas, MO-based railroad operator Kansas City Southern KSU, Canadian Pacific Railway Limited’s CP $31-BILLION offer (inclusive of the $3.8-BILLION outstanding debt) is likely to be accepted by the former.We remind investors that on Aug 31, the U.S. Surface Transportation Board (STB) rejected Canadian National’s proposal to set up a voting trust for the acquisition of Kansas City Southern. Following the STB decision, Canadian Pacific (its $31-BILLION bid was rejected earlier) re-entered the fray. The company informed Kansas City Southern that its offer was still valid through Sep 12. Subsequently, Kansas City Southern’s board, after consulting advisors, decided that Canadian Pacific’s proposal constitutes a "Company Superior Proposal" as defined under the U.S. railroad’s merger agreement with Canadian National Railway Company CNI.Kansas City Southern informed Canadian National that it will terminate the deal inked between the two companies, if the latter does not come up with a better offer by Friday. Unlike Canadian National, the STB approved Canadian Pacific’s request for using a voting trust for the same impending acquisition. This development makes it likely for the regulatory authorities to fully approve its offer.Canadian Pacific’s cash and stock offer, under which each share of Kansas City Southern common stock will be exchanged for 2.884 common shares of the acquirer in addition to $90 in cash, can be accepted by Kansas City Southern within Sep 20. In addition to the above features, Canadian Pacific’s offer entitles the holders of Kansas City Southern’s preferred shares to $37.50 in cash for each preferred share held.Watch this space for more updates on the hot topic in the railroad space.Zacks Rank & Key PickKansas City Southern currently carries a Zacks Rank #3 (Hold). A better-ranked stock in the Zacks Transportation-Rail industry is Union Pacific Corporation UNP, presently carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Shares of Union Pacific have gained 4.5% in a year’s time. Tech IPOs With Massive Profit Potential: Last years top IPOs surged as much as 299% within the first two months. With record amounts of cash flooding into IPOs and a record-setting stock market, this year could be even more lucrative. See Zacks’ Hottest Tech IPOs Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Union Pacific Corporation (UNP): Free Stock Analysis Report Canadian National Railway Company (CNI): Free Stock Analysis Report Kansas City Southern (KSU): Free Stock Analysis Report Canadian Pacific Railway Limited (CP): Free Stock Analysis Report To read this article on Zacks.com click here.