Merger Dance Takes New Turns (UPDATED)
The merger dance that has been conducted since March 21 has morphed from the Waltz to the Mambo in “The Dance at the Gym” scene in “West Side Story” to the Twist.
CP
STB OKs KCS Waiver for CPKC
The Surface Transportation Board (STB) has confirmed that it will review the proposed merger of Canadian Pacific (CP) and Kansas City Southern (KCS) under the waiver provision it granted KCS in 2001; Robert Primus, one of the five Board members, dissented.
Cowen Snap Shipper Survey Appears to Favor CPKC
A Cowen and Company “snap” railroad shipper survey conducted over a one-day period indicates that CN “is likely to have a more difficult time with shippers supporting its proposed acquisition of Kansas City Southern. This compares to a more favorable view by shippers of Canadian Pacific acquiring KCS in our most recent survey.”
Commentary
Chess Game for Railroad Real Estate (UPDATED)
A bidding war has broken out for the Kansas City Southern, but it’s actually more like a chess game. Here are some observations about what it all could mean, especially in terms of railroad “real estate,” from my economist observation post.
Railway Age 2021 Readers’ Influential Leaders
Railway Age is pleased to present the results of its second annual Readers’ Influential Leaders program.
For ‘CPKC’ Proposal, Widespread Support (Updated)
Canadian Pacific (CP) and Kansas City Southern (KCS) have announced that more than 405 customers and stakeholders are backing their planned combination, “CPKC.”
KCS: Challenging 1Q21, Improving Outlook (Updated, Cowen)
Kansas City Southern’s first-quarter financials were slightly off from the prior-year period due to several factors, but the merger-bound Class I says it anticipates improved operating and service metrics and revenue growth this year.
SMART-TD on CPKC: Waiver OK, Keep Our Protections
SMART Transportation Division (SMART-TD) President Jeremy R. Ferguson has sent a letter to Canadian Pacific (CP) President and CEO Keith Creel stating that the union he runs generally supports what CP and Kansas City Southern (KCS) are seeking from the Surface Transportation Board for their merger.
CP, KCS Counter DOJ ‘Concerns’
Merger applicants Canadian Pacific (CP) and Kansas City Southern (KCS) are refuting the U.S. Department of Justice’s (DOJ) recent filing with the Surface Transportation Board (STB) questioning use of a voting trust and granting KCS an exemption under merger rules established about 20 years ago.
Cowen Surveys Find ‘Encouraging’ Shipper Business Outlook
Two first-quarter 2021 surveys of rail shippers on pricing and business outlook as well as equipment needs conducted by Cowen and Company analysts Jason Seidl (Managing Director and Railway Age Wall Street Contributing Editor), Matt Elkott and Elliot Alper indicate that, compared with the previous quarter, Class I railroad customers are anticipating somewhat higher rate increases, and a slight decline in new railcar demand.