Commentary

CN Voting Trust Clears STB New Merger Rules Tests. It Should Be Approved

Having been one of the three Surface Transportation Board (STB) Members who voted on the 2001 Major Merger Rules, it seems clear to me that the CN voting trust satisfies the new rules requirements addressing “unlawful control” and the “public interest” when deciding to approve or reject a voting trust. As such, it should be approved so that the Board and the public may move forward to consider the merits of the proposed transaction.

The CN-Kansas City Southern Merger, with JJ Ruest and Pat Ottensmeyer: RAIL GROUP ON AIR

CN President and CEO JJ Ruest and Kansas City Southern President and CEO Pat Ottensmeyer discuss the two railroads’ pending merger in detail with Railway Age Editor-in-Chief William C. Vantuono. How confident

Ruest, Ottensmeyer: Voting Trust “Meets the Public Interest Test”

During what will most likely be the first of many joint appearances as their merger process progresses, CN President and CEO JJ Ruest and Pat Ottensmeyer, his counterpart at Kansas City Southern, said that their jointly filed voting trust application “meets the Surface Transportation Board’s public interest test under current merger rules.”

Support Grows for CN-KCS Combination

CN and Kansas City Southern (KCS) reported June 2 that they have received more than 400 letters of support for their proposed merger since KCS chose to partner with CN on May 21 over rival Canadian Pacific (CP).

CP Speaks Out: More Stakeholder ‘Concern’ Over CN-KCS Proposal

Canadian Pacific (CP) reported June 1 that it “remains confident” in its “superior status” as Kansas City Southern’s (KCS) merger partner, noting that more than 130 stakeholders have filed statements with the Surface Transportation Board (STB) requesting the rejection of merger rival CN’s voting trust application.

STB to Class I’s: Keep Reporting Demurrage, Accessorial Charge Revenues

The Surface Transportation Board (STB) on May 28 sent identical letters to the Class I railroad CEOs—the second set of letters in as many days—requesting that they continue providing quarterly information about their revenues from demurrage and accessorial charges.

STB to Class I’s: Are You Prepared?

Surface Transportation Board (STB) Chairman Martin J. Oberman has called on the CEOs of the seven North American Class I’s to provide an update on their preparedness to meet service demands, particularly as railroad employment rates have fallen.

CP: CN Line Divestiture ‘Doesn’t Come Close’

The war of words between Canadian Pacific and CN isn’t over, with CP on May 27 issuing a statement that its merger rival’s commitment to divest Kansas City Southern’s New Orleans-Baton Rouge line is a “token divestment [that] would not begin to address the competitive issues in the rail corridors running north from Louisiana and Mississippi through America’s heartland, where KCS and CN have historically competed.”

CN, KCS File for STB Voting Trust Approval

Proposed merger partners CN and Kansas City Southern (KCS) have filed with the Surface Transportation Board (STB) a renewed motion for voting trust approval, which includes a commitment to divest a 70-mile line overlap in Louisiana.

Fitch Affirms KCS at ‘BBB’

Fitch Ratings has affirmed Kansas City Southern’s Long-Term Issuer Default Rating (IDR) and senior unsecured rating at ‘BBB.’ In addition, Fitch has affirmed KCS’s Short-Term IDR and senior unsecured rating at ‘F2.’ Fitch’s Rating Outlook is ‘Stable.’

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