In rejecting the proposed CN-KCS voting trust, the STB recognized the trust was not consistent with the public interest and the CN-KCS combination is anticompetitive.
A vote to "ABSTAIN" and vote "AGAINST" are essentially the same since they both withhold approval of the CN merger proposal. Importantly, the STB has already approved CP's use of a voting trust and affirmed KCS' waiver from the new rail merger rules it adopted in 2001 because a CP-KCS combination is truly end-to-end, pro-competitive, and the only viable Class 1 combination.ĬP has filed a proxy statement asking stockholders to vote "AGAINST" the proposed CN-KCS combination at the KCS stockholders meeting so that KCS stockholders are not locked into the CN-KCS deal and unable to consider other, better, options. CP-KCS is a superior combination that has a path to approval and deal certainty for the KCS shareholders.Īs previously announced, CP continues to pursue its application process for a potential acquisition of KCS so that the STB can review the pro-competitive CP-KCS combination without undue delay. "Hundreds of rail shippers, community leaders, elected officials and other stakeholders have voiced those same concerns and today the STB agreed."ĬP-KCS is the only true end-to-end Class 1 combination that serves the public interest preserving and enhancing competition for customers and enabling a stronger North American rail network connecting Canada, the United States and Mexico. "CP has always maintained that the CN-KCS combination and the proposed CN voting trust is not in the public interest," Creel said. The text of the letter to the KCS Board of Directors can be found below in this news release. Today, we have notified the KCS Board of Directors that our August 10 offer still stands to bring this once-in-a lifetime partnership together." "Knowing this, we believe the August 10 CP offer to combine with KCS, which recognizes the premium value of KCS while providing regulatory certainty, ought to be deemed a superior proposal. "The STB decision clearly shows that the CN-KCS merger proposal is illusory and not achievable," said Keith Creel, CP President and CEO. Canadian Pacific Railway Limited (TSX: CP) (NYSE: CP) today said the Surface Transportation Board's ("STB") decision to refuse Canadian National ("CN") and Kansas City Southern's ("KCS") joint motion for voting trust approval is the right one for rail shippers, the freight rail industry and the North American economy.
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