Canadian Pacific to Buy Kansas City Southern

[Missaberoad]

https://www.progressiverailroading.com/federal_legislation_regulation/news/STB-New-merger-rules-apply-to-CNKCS-proposal--63514

CN's path has gotten much harder, the STB denied their use of the KCS waiver and their use of a voting trust. They have a masive task of proving the benefit to their takeover under the new rules...

[learmoia]

As I said in the CN+KCS thread..

Well, this is one way to prevent a merger between a partner and your competitor...

~Ian

I don't think CN has any intention to (actually) merge with KCS..

~Ian


 

[Philip H]

I don't think CN has any intention to (actually) merge with KCS..

~Ian

Honestly I'm beginning to think KCS may be trying to throw both of them off and stay independent . . . .

[davefoxx]

Honestly I'm beginning to think KCS may be trying to throw both of them off and stay independent . . . .

I wouldn't have any problem with KCS avoiding becoming a fallen flag.

DFF

[Missaberoad]

Judging from their statements KCS is quite happy to be the Belle of the ball... Pardon the pun 

At the end of the day they want what will make their shareholders the most money... For better or worse...

[Philip H]

At the end of the day they want what will make their shareholders the most money... For better or worse...

Pretty sure the shareholders are happy:

[Lenny53]

KCS kicks CP to the curb

https://financialpost.com/transportation/rail/k-c-southern-agrees-to-30-billion-cn-rail-deal-rejecting-cp

[learmoia]

Seems like a win win for KCS share holders.

CN may have overplayed thier hand a bit.

CP was smart not to counter..

~Ian

[Philip H]

Seems like a win win for KCS share holders.

CN may have overplayed thier hand a bit.

CP was smart not to counter..

~Ian

Indeed.  Given the significant overlap of facilities and lines, and CN-KCS merger will likely require a LOT of sell off. And that assumes the STB approves, which I imagine they will have a hard time doing once the shippers and other RR's weigh in.  Frankly I think an independent KCS is the best way to keep the last round of super mergers from happening.

[learmoia]

Yeah..

CP gets 700M
KCS gets 1B
A: Trust fails.. CP buys or independent
B: STB fails.. same result
C: STB approves but CP can buy access to Mexico (or at least Texas).

[Missaberoad]

Yeah..

CP gets 700M
KCS gets 1B
A: Trust fails.. CP buys or independent
B: STB fails.. same result
C: STB approves but CP can buy access to Mexico.

This... its looking like CN is on the losing end here...

[basementcalling]

Heard an anti CN/KCS merger commercial on the radio here today. Surprise was it was paid for by Canadian Pacific.