As Canadian Pacific and CN vie for a merger with Kansas City Southern, the letters of support for both potential transactions continue to pile up at the Surface Transportation Board. On May 10, it was CP’s turn to up its count, as it reported 131 new letters.
RAILWAY AGE MAY 2021 ISSUE: The mantra of these railroaders: Making a difference. They’re not only helping to shape the industry, but also tomorrow’s leaders.
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
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.”
The merger dance that has been conducted since March 21 has morphed from the Waltz to the Mambo in “The Dance at the Gym” scene in “West Side Story” to the Twist.
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.
A Cowen and Company “snap” railroad shipper survey conducted over a one-day period indicates that CN “is likely to have a more difficult time with shippers supporting its proposed acquisition of Kansas City Southern. This compares to a more favorable view by shippers of Canadian Pacific acquiring KCS in our most recent survey.”
A bidding war has broken out for the Kansas City Southern, but it’s actually more like a chess game. Here are some observations about what it all could mean, especially in terms of railroad “real estate,” from my economist observation post.
Railway Age is pleased to present the results of its second annual Readers’ Influential Leaders program.