Canadian Pacific President and CEO Keith Creel on April 21 issued a letter to his counterpart and intended merger partner, Kansas City Southern President and CEO Pat Ottensmeyer, stating that CP is
CN on April 21 submitted to the U.S. Surface Transportation Board a prefiling notification of its intent to file an application seeking authority to combine with Kansas City Southern “further to CN’s superior proposal for a cash-and-stock transaction valued at $33.7 billion, or $325 per share.”
Canadian Pacific (CP) outlined why its combination with Kansas City Southern (KSC) is the only one “involving KCS that is in the public interest,” in an April 21 letter filed with the Surface Transportation Board (STB).
Perhaps not so surprisingly, almost exactly one month to the day after Canadian Pacific and Kansas City Southern announced their intent to merge into CPKC (Canadian Pacific Kansas City), CN made a counter-offer it said is a “superior proposal” that “will result in a safer, faster, cleaner and stronger railway.” CN’s proposal of $325 per KCS share “represents a 21% premium over the implied value of the CP transaction and values KCS at an enterprise value of $33.7 billion.”
Canadian Pacific (CP) and Kansas City Southern (KCS) have announced that more than 405 customers and stakeholders are backing their planned combination, “CPKC.”
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.
Kansas City Southern (KCS), now in the midst of a merger with Canadian Pacific, has bolstered its executive leadership team with two strategic appointments: Jeffrey M. Songer in the new role of Executive Vice President-Strategic Merger Planning, and John F. Orr as Executive Vice President-Operations.
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.
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.
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.
