STB Releases, Seeks Comments on Proposed CP-KCS Merger Proceeding Schedule

The Surface Transportation Board (STB) has released a procedural schedule for the proposed transaction creating Canadian Pacific Kansas City (CPKC) and is inviting public comment.

Next Step Under Way For CPKC

It’s mainly procedural: On Oct. 29, Canadian Pacific and Kansas City Southern jointly filed a railroad control application with the Surface Transportation Board transaction to create Canadian Pacific Kansas City (CPKC), “the only single-line railroad linking the United States, Mexico and Canada.”

“We are encouraged that despite several commercial headwinds, our network is performing extremely well and we are delivering near record velocity and dwell,” KCS President and CEO Patrick J. Ottensmeyer said on Oct. 19.

KCS 3Q21: ‘Commercial Headwinds’ Reduce Volumes (Updated, Cowen)

Kansas City Southern (KCS) on Oct. 19 was the first Class I to report third-quarter 2021 earnings. Revenue for the potentially merger-bound railroad—back with original suitor Canadian Pacific (CP)—came in at $744.0 million, growing 13% from the prior-year period ($659.6 million), but volumes fell.

CPKC a ‘Powerful Combination’

“I am elated for our CP family,” an understandably energized Canadian Pacific President and CEO Keith Creel told Railway Age Editor-in-Chief William C. Vantuono the day after a joint call with analysts with his

CN-KCS: Terminabitur. CPKC: Resumo. E Duobus, Unum

For those of you who don’t read or speak Latin (including the author), terminabitur translates to “terminated” or “discontinued.” Resumo translates to “resumed” or “picked up where we left off.” E duobus,

CP, KCS Rekindle Relationship (UPDATED)

Surprise, surprise: On Sept. 4, 2021, four days after the Surface Transportation Board slammed the door shut on the CN-Kansas City Southern voting trust, effectively killing the proposed merger of the two Class I’s, the KCS Board of Directors has unanimously determined, after consultation with outside legal and financial advisors, that the “unsolicited proposal” received from Canadian Pacific on Aug. 31, 2021 to acquire KCS in a cash and stock transaction valued by CP at $300 per KCS share “could reasonably be expected to lead to a ‘Company Superior Proposal’ as defined in KCS’s merger agreement with CN.”

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?*

CN’s Bid for Kansas City Southern, with JJ Ruest and Rob Reilly: RAIL GROUP ON AIR PODCAST

One month 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

NDGDA Reiterates Support for CPKC

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.

CN Counters CPKC with a ‘Superior Proposal’ (UPDATED)

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.”