KCS: Beware of Titus Rockefeller LLC

Kansas City Southern has received notice of an unsolicited “mini-tender” offer by Canadian outfit Titus Rockefeller LLC (a.k.a. TRC Capital Investment Corp.) to purchase up to 500,000 shares, or approximately 0.55%, of KCS’s outstanding common stock at a price of $285.00 per share in cash. KCS said it does not endorse the offer and recommends that its shareholders reject it and not tender their shares in response to it. TRC Capital has been cited in numerous documented cases of securities fraud (see below).

CPKC Support Count Nears 550

As Canadian Pacific and CN vie for a merger with Kansas City Southern, the letters of support for both potential transactions continue to pile up at the Surface Transportation Board. On May 10, it was CP’s turn to up its count, as it reported 131 new letters.

STB Approves CPKC Voting Trust (UPDATED)

The Surface Transportation Board on May 6 approved, by unanimous vote, a voting trust for Canadian Pacific’s proposed merger with Kansas City Southern. “The Board finds that formal Board review of the voting trust agreement proposed for use in connection with this transaction is warranted and determines that the proposed arrangement is acceptable with certain modifications,” STB wrote in Docket No. FD 36500.

Gorton Returns to Conrail as President, COO

Brian E. Gorton, who began his career in 1987 as a Conrail conductor, has returned to his “home railroad” as President and Chief Operating Officer. He succeeds Timothy C. Tierney, who is retiring after nearly 43 years in the railroad industry.

Cowen: Can UP Drive to 55?

At Union Pacific’s Investor Day, where achievements in operational efficiency, benefits of PSR implementation, shareholder returns and financial outlook were discussed, management predicted that the railroad will achieve a 55% OR (operating ratio) by 2022. As a result, Cowen and Company modestly adjusted its 2022 assumptions.

SFMTA F Line Historic Streetcars Returning

The San Francisco Municipal Transportation Agency (SFMTA) will return the F Market & Wharves historic streetcars to service on Saturday, May 15, between Fisherman’s Wharf and Castro and Market streets, seven days a week.

Savage Debuts Tooele Railport, Utah

Utah-based global transportation and logistics company Savage has opened Savage Railport in Tooele, Utah, described as “a multi-commodity transload facility strategically located to serve Salt Lake City and surrounding markets.”

Mexico City Metro Viaduct Collapse Kills 24

On May 3, at 10:22 p.m., a viaduct support underneath a moving Mexico City Metro train collapsed, causing the train to crash onto a busy street underneath. The death toll was 24, and more than 70 were injured.

Amtrak Spells it All Out for Congress

Amtrak has submitted its FY22 General and Legislative Annual Report and Five-Year Plan to Congress and the USDOT. The FY22 Grant Request proposes $3.88 billion for base needs and funding to offset the pandemic’s impacts on Amtrak and its state and commuter partners. In addition, Amtrak has identified $1.55 billion in additional investment necessary to fund what Amtrak calls its “bold reauthorization proposal to improve Northeast Corridor infrastructure and begin advancing new corridor routes across the nation.”

CP to STB: CN + KCS ‘Plainly Flunks End-to-End Test’

Canadian Pacific on April 30 filed a formal objection with the Surface Transportation Board stating that CN “does not qualify for a waiver of the STB’s rules for major transactions, with respect to CN’s unsolicited proposal for Kansas City Southern.”

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