KANSAS CITY, Mo. — Kansas City Southern has fired back at Canadian Pacific’s appeal to its stockholders to turn down the proposed merger with Canadian National, saying those stockholders should focus on the fact CN’s offer is worth $50 more per share than the last CP proposal.
CP filed a proxy statement asking KCS shareholders to vote against the CN deal on July 29, saying uncertainty over Surface Transportation Board approval of a voting trust meant the deal was not in the shareholders’ interest [see “Canadian Pacific asks KCS stockholders to vote against …,” Trains News Wire, July 30, 2021].
In a statement released Monday morning, KCS notes that CP has not upped its original $275-per-share offer, and passed on a period of five business days to do so after CN made its bid. CP “did not make any new proposal in its most recent filing,” the statement notes. “Nor did it commit to making one in the future. … Shareholder approval of the CN transaction best positions KCS to deliver superior value to our shareholders as soon as possible.”
KCS stockholders will vote on the CN offer in a special meeting on Aug. 19. KCS proxy materials can be found at the U.S. Securities and Exchange Commission website.
It will probably come down to the STB forcing CN to terms that allows more competition in the Chicago-Petro Coast route.
Wall street greed never stays down for long. But wouldn’t it be great if the STB slapped everyone down.
Charles, I’m not a champagne drinker. But if things go the way you suggest I just might head to Nejaimes Wine & Cheese in downtown Lenox, MA, walking distance from my house, and buy a bottle.
CN is overpaying, which is great for the stockholders. In the long run it may not be that beneficial to the old KSC or CN. Greed of the CN directors and Wall Street.
IF that happens, CP will come back with a greatly reduced offer. Haha!
GERALD and AL – Cross your combined twenty fingers. This may be the first time in a while the greedy get slapped down. Here’s hoping!
When the CN – KCS voting trust and/or merger are rejected by the STB? Then what? What do the shareholders get out of that scenario.