Commentary

TCI, Newly Empowered, Steamrolls CN (UPDATED)

There’s an 800-pound British gorilla pounding on the door of CN’s boardroom. He’s pissed, beating his chest, and licking his chops. He’s not going away until he cleans house. He’s Sir Chris Hohn, and the activist hedge fund he leads, TCI Fund Management Ltd., on Aug. 30 became a “beneficial owner” of CN, grabbing 5.2% of the railroad’s shares, putting Hohn and his business partner, Ben Walker, in a position to make CN an offer it probably can’t refuse.

STB UNANIMOUSLY REJECTS CN-KCS VOTING TRUST. CPKC BACK IN PLAY (Updated Sept. 3)

UPDATED SEPT. 3, 2021: The United States Surface Transportation Board—as expected by many industry observers and financial analysts—on Aug. 31, 2021, by unanimous vote, rejected the CN-Kansas City Southern voting trust, effectively killing the merger, and opening the door for Canadian Pacific to re-engage with KCS on the CPKC (“Canadian Pacific Kansas City”) deal it struck with KCS on March 21, albeit with a sweetened offer. KCS postponed its Sept. 3 shareholder meeting to vote on the CN offer until 9 a.m. (CT) on Sept. 24. It is now “evaluating its options,” which includes considering CP’s offer.

TCI Ups Its Stake in CN; STB Rejects Voting Trust. What Next? (UPDATED)

On Aug. 30, 2021—the day before the Surface Transportation Board rejected the voting trust for the proposed CN/Kansas City Southern merger—TCI Fund Management Ltd. filed a Schedule 13D form with the U.S. Securities and Exchange Commission to report that it had increased its stake in CN to 5.2%. TCI already is CN merger rival Canadian Pacific’s second-largest shareholder. Some industry observers found TCI’s move “interesting” and “critical” as the activist hedge fund has strongly objected to CN’s merger attempt with KCS.

Savage Expanding Transload Business

Savage has completed construction of its CPT Chicago Transload terminal for lumber and building materials at Canadian Pacific’s Bensenville, Ill., rail yard.

KCS Teaming With Louisiana College on Women’s Scholarship Program

Kansas City Southern (KCS) is partnering with Northwest Louisiana Technical Community College (NLTCC) to support the education and training of three female students pursuing careers in the diesel, electrician, industrial maintenance technology, industrial instrumentation, electrical technician or welding fields.

KCS Reschedules Stockholder Meeting for Sept. 3

Kansas City Southern (KCS) stockholders will now vote on the “definitive merger agreement” with CN on Sept. 3, 2021, KCS reported.

Savage, KCS to Launch Louisiana Railport

Savage, a Utah-based global infrastructure and supply chain services company, is teaming with Kansas City Southern (KCS) to build a multi-commodity railport for transloading and storage in Mossville, La.

Commentary

Why STB’s Inquiry Is a Public Service to Intermodal Shippers

Jim Blaze takes a technical look at the Class I’s responses to the STB’s inquiry on intermodal from his experience dating back to 1968.

KCS + CN or CP: Timeout Called

Yet another potentially game-changing moment for Kansas City Southern in the railroad version of the Super Bowl—the merger tug-of-war between rival Canadian teams, taking place on the Surface Transportation Board playing field before head official Marty Oberman, this one not entirely unexpected: The KCS board has called a timeout (postponed) the Aug. 19 shareholder vote on accepting or rejecting CN’s power-play* offer until the STB rules on the CN/KCS voting trust. Will Canadian Pacific pull off a hat trick?*

KCS to STB on ‘Managing Intermodal Operations Effectively’

Kansas City Southern President and CEO Pat Ottensmeyer on Aug. 3 responded to Surface Transportation Board Chairman Marty Oberman’s July 22 letter to Class I railroad CEOs requesting information on the extent of congestion

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