Railroad Merger Falls Through

Union Pacific Corp. and the Missouri-Kansas-Texas Railroad Co. said today they have terminated a merger agreement under which M-K-T would have been acquired by Union Pacific’s subsidiary, Missouri Pacific Railroad Co., for $108 million in cash and securities.

A joint press statement attributed the termination to M-K-T’s failure to buy $30.19 million, or 60%, of its income certificates, a type of promissory note issued in lieu of stock dividends 28 years ago.