Author: Jason Seidl, Matt Elkott and Elliot Alper

A Fight for Shareholder Approval

Canadian Pacific, CN and Kansas City Southern have been battling for votes in KCS’s upcoming shareholder vote on August 19 to approve or reject the CN transaction. CP has been actively telling investors to vote no, while KCS and CN have been pushing for approval. It remains uncertain if there will be a decision from the STB on a CN/KCS voting trust prior to the shareholder vote. We continue to believe that there is a 60% chance of approval for the voting trust, but remain wary of the political climate.

Cowen: Biden’s EO a ‘Laundry List’

We hosted our second call with a noted transportation attorney to discuss the Executive Order signed by President Biden on July 9. It appears to be much more measured than early reporting initially indicated. The tone surrounding the railroads implied recognized independence of the Surface Transportation Board, and is likely in line with the thinking of the Marty Oberman-led organization. Longer term, we will monitor bottleneck implications.