We use cookies to provide you with a better experience. By continuing to browse the site you are agreeing to our use of cookies in accordance with our Cookie Policy.
  • INDUSTRY PRESS ROOM
  • SUBMISSIONS
  • MEDIA FILE
  • Create Account
  • Sign In
  • Sign Out
  • My Account
Free Newsletters
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
  • STRATEGY
  • GLOBAL
  • LOGISTICS
  • MANUFACTURING
  • PROCUREMENT
  • VIDEO
    • News & Exclusives
    • Viewer Contributed
    • CSCMP EDGE 2022 Startup Alley
    • Upload your video
  • PODCAST ETC
    • Podcast
    • White Papers
    • Webcasts
    • Events
    • Blogs
      • Reflections
      • SCQ Forum
    • Mobile Apps
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
  • STRATEGY
  • GLOBAL
  • LOGISTICS
  • MANUFACTURING
  • PROCUREMENT
  • VIDEO
    • News & Exclusives
    • Viewer Contributed
    • CSCMP EDGE 2022 Startup Alley
    • Upload your video
  • PODCAST ETC
    • Podcast
    • White Papers
    • Webcasts
    • Events
    • Blogs
      • Reflections
      • SCQ Forum
    • Mobile Apps
Home » Battle continues for Kansas City Southern

Battle continues for Kansas City Southern

Canadian Pacific submits counter offer to CN deal; shareholders await STB decision.

2015-May.jpg
August 13, 2021
Victoria Kickham
No Comments
The tug-of-war between Canadian Pacific Railway (CP) and Canadian National (CN) for a merger with U.S. freight railway Kansas City Southern (KCS) continued this week, as CP offered a new merger proposal and KCS subsequently delayed a shareholder vote slated for later this month pending input from the U.S. Surface Transportation Board (STB).

On Tuesday, CP submitted an offer to acquire KCS in a stock and cash transaction of approximately $31 billion, saying the deal represents superior terms to its March merger proposal, which was ultimately rejected by KCS in favor of a $33.6 billion bid from CN. The CN/KCS deal is pending approval of its voting trust agreement from the STB, which has said it will issue its decision by August 31. KCS said Thursday it intends to adjourn its special meeting of shareholders slated for August 19 if the STB decision is not issued before August 17.

The moves mark yet another bump on the road to creating a continuous rail network spanning the North American continent and connecting Canada, the United States, and Mexico.

KCS also said Thursday that its board of directors unanimously determined that the proposal from CP does not constitute a superior proposal to its agreement with CN, and that the board continues to recommend shareholders vote for the proposed transaction with CN. Delaying the August 19 stockholder vote pending the STB decision will give “all shareholders and the Board time to receive and consider the STB decision,” KCS also said.

In a separate statement Thursday, CP officials applauded the move to delay the stockholder vote and reaffirmed its assertion that the CN/KCS deal would be anti-competitive.
Logistics Rail
KEYWORDS Canadian National Railway Canadian Pacific Railway Kansas City Southern
    • Related Articles

      CN claims victory over rival railway in bidding war for Kansas City Southern

      Canadian Pacific and Kansas City Southern agree on terms of $31 billion takeover

      Canadian Pacific gains advantage in fight to merge with U.S. freight railway Kansas City Southern

    Victoria kickham headshot
    Victoria Kickham started her career as a newspaper reporter in the Boston area before moving into B2B journalism. She has covered manufacturing, distribution and supply chain issues for a variety of publications in the industrial and electronics sectors, and now writes about everything from forklift batteries to omnichannel business trends for DC Velocity.

    Recent Articles by Victoria Kickham

    Transportation report: Rising fuel prices will drive higher costs

    Logistics economy grew in March

    Logistics economy grew in February

    You must login or register in order to post a comment.

    Report Abusive Comment

    Most Popular Articles

    • Report: Sagging freight stats show that trucking sector is returning to its historic mean

    • Survey: parcel delivery drivers are frustrated by using their own smartphones for work

    • Heavy transport across two continents

    • Survey: most Americans unaware that truckers face shortage of parking spaces

    • Supply chain executives not yet seeing expected results from technology investments

    Featured Video

    20221107korber large vs

    Enhancing Customer Experience with Your Supply Chain Strategy

    Viewer Contributed
    With the rise of e-commerce, many businesses have had to transform their warehouses to handle online orders in addition to regularly scheduled inventory shipments. This means warehouses need more information than ever before to ensure they can meet customers' needs. As a result, companies need to select warehouse...

    FEATURED WHITE PAPERS

    • Three layers of forklift safety: Promoting operating best practices

    • The Complete Guide to Automated Packaging

    • Five tips for parcel success in 2023

    • Guide to Pallet Rack Safety

    View More

    Subscribe to Supply Chain Quarterly

    Get Your Subscription
    • SUBSCRIBE
    • E-NEWSLETTERS
    • ADVERTISING
    • CUSTOMER CARE
    • CONTACT
    • ABOUT
    • STAFF
    • PRIVACY POLICY

    Copyright ©2023. All Rights ReservedDesign, CMS, Hosting & Web Development :: ePublishing