KCS to CN: Proposal Accepted. (But is it Final?)
CN and Kansas City Southern (KCS) on May 21 entered into a definitive merger agreement that, barring an unexpected twist, ends weeks of a tug of war between CN and Canadian Pacific.
CN and Kansas City Southern (KCS) on May 21 entered into a definitive merger agreement that, barring an unexpected twist, ends weeks of a tug of war between CN and Canadian Pacific.
Canadian Pacific President and CEO Keith Creel on May 20 responded to the Kansas City Southern Board of Directors and President and CEO Pat Ottensmeyer calling on them to reject CN’s counter-proposal “in light of intervening events” and stay with “the achievable, compelling value under the pre-existing merger agreement” with CP. Creel also confirmed that CP will not engage in a bidding war with CN.
On May 19, we hosted a call with a noted transportation attorney to discuss the latest news surrounding the proposed merger involving KSU/CP/CNI. The STB decision on May 17 indicates more caution surrounding voting trusts; CNI must show that the trust keeps a level playing field. The key for CNI will be that public benefits outweigh harms.
MidRail LLC Chairman Gil Lamphere offers his views on the competition between Canadian Pacific and CN to acquire Kansas City Southern, discussing the details of voting trusts and the role of the
The Surface Transportation Board (STB) decided May 17 that CN’s proposed merger with Kansas City Southern (KCS) will be reviewed under its current merger rules and CN’s motion to approve a proposed voting trust agreement has been denied as incomplete, “without prejudice to filing a new motion.”
In a May 14 filing with the Surface Transportation Board, the United States Department of Justice has said CN’s application for a voting trust to acquire Kansas City Southern should be denied, because the proposed merger “raises sufficient competition concerns.”
The activity involving Kansas City Southern and its two potential merger partners, Canadian Pacific and CN, took yet another turn late on May 13. CN appears to have come out on top, but don’t count CP out, at least not yet.
Another 180 customers and stakeholders have submitted letters to CN in support of its proposed combination with Kansas City Southern (KCS), its use of a voting trust, or both, upping the total to more than 1,000, CN reported May 12. All have been filed with the Surface Transportation Board (STB).
CN is honoring 55 customers and supply chain partners for sustainability leadership as part of its EcoConnexions Partnership Program for 2021.
RAILWAY AGE MAY 2021 ISSUE: The mantra of these railroaders: Making a difference. They’re not only helping to shape the industry, but also tomorrow’s leaders.