FINANCIAL EDGE, RAILWAY AGE MAY 2021 ISSUE: The scuffle between CP and CN to acquire Kansas City Southern requires comment. In the 2021 Railroad Financial Desk Book, it was noted that KCS’s
The Surface Transportation Board on May 6 approved, by unanimous vote, a voting trust for Canadian Pacific’s proposed merger with Kansas City Southern. “The Board finds that formal Board review of the voting trust agreement proposed for use in connection with this transaction is warranted and determines that the proposed arrangement is acceptable with certain modifications,” STB wrote in Docket No. FD 36500.
Customers and other stakeholders are voicing support as well as concerns to the Surface Transportation Board (STB) about CN’s proposed combination with Kansas City Southern (KCS), according to simultaneous press releases from CN and Canadian Pacific.
Canadian Pacific on April 30 filed a formal objection with the Surface Transportation Board stating that CN “does not qualify for a waiver of the STB’s rules for major transactions, with respect to CN’s unsolicited proposal for Kansas City Southern.”
President Joe Biden will nominate Democrat Karen J. Hedlund, current Vice President and National Rail Strategy Advisor at WSP USA and former Federal Railroad Administration Deputy Administrator, to replace Republican Ann Begeman on the Surface Transportation Board.
Yet another letter. Be warned: This one, nearly 3,000 words, is from Canadian Pacific’s attorney to the Surface Transportation Board. It essentially says CN has it totally wrong by asking the STB to approve a voting trust for its proposed acquisition of Kansas City Southern under the same conditions as a CP-KCS combination.
Amtrak, on the eve of a 50th Anniversary virtual celebration slated to feature President Joe Biden, has filed a petition asking the Surface Transportation Board to deny CSX’s and Norfolk Southern’s motion to dismiss Amtrak’s application to restore passenger rail service to the Gulf Coast between New Orleans, La., and Mobile, Ala.
The letters keep coming: Railway Age has obtained a letter Canadian Pacific President and CEO Keith Creel sent to his counterpart at Kansas City Southern, Pat Ottensmeyer, pointing out in detail “the dimensions of competition between KCS and CN.”
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.
Just when we thought Railway Age would get a brief break from publishing letters about mergers, here’s another one, from the North Dakota Grain Dealers Association (NDGDA) to the Surface Transportation Board re-iterating its support of the Canadian Pacific-Kansas City Southern combination.