CN denied

[Jbub]

Surprised this wasn't posted yet

https://www.wsj.com/articles/canadian-national-voting-trust-for-kansas-city-southern-deal-denied-by-stb-11630431983#:~:text=In%20the%2033%2Dpage%20decision,under%20the%20current%20major%20merger

[Philip H]

I've been busy . . . 

So KCS gets to remain independent, its share prices went up, and while it had to pay CP to back out of that deal it got paid more (or soon will) by CN.  Wins all around.

[Missaberoad]

I've been busy . . . 

So KCS gets to remain independent, its share prices went up, and while it had to pay CP to back out of that deal it got paid more (or soon will) by CN.  Wins all around.

Or they will revisit the CP offer, or the shareholders will decide the reward of the CN deal is worth the increased risk.
Lots of factors in play still, including potentially a hostile bid from CP or the unknown party they were negotiating with before...

[learmoia]

I thought the CN was going to pay both the CP blackout fee AND pay the KCS 1 Billion

Here is a link to our prior thread from May.
https://www.therailwire.net/forum/index.php?topic=51722.50

[Lenny53]

One major CN investor is out for blood

https://www.trains.com/trn/news-reviews/news-wire/major-cn-investor-calls-for-ouster-of-ceo-and-chairman-after-kcs-decision/

[Lenny53]

KCS looking at CP offer again, two caveats are whether the definition of 'superior offer' bottom line only and what does the CN purchase agreement spell out about any appeals to the STB 

https://www.cbc.ca/news/canada/calgary/kcs-cp-rail-1.6165574

[learmoia]

One major CN investor is out for blood

https://www.trains.com/trn/news-reviews/news-wire/major-cn-investor-calls-for-ouster-of-ceo-and-chairman-after-kcs-decision/

Ya think?.. they just threw $1 Billion out the window..

If STB already approved CPs trust, seems they are already giving a nod to the outcome they want (if anything happens)

Wonder how long it takes for BNSF/NS, UP/CSX, CN/???

[Philip H]

Ya think?.. they just threw $1 Billion out the window..

If STB already approved CPs trust, seems they are already giving a nod to the outcome they want (if anything happens)

Wonder how long it takes for BNSF/NS, UP/CSX, CN/???

STB put a couple of paragraphs way down in the CN denial that basically said no big mergers going forward. 

[Philip H]

STB put a couple of paragraphs way down in the CN denial that basically said no big mergers going forward.

To wit:

"Buried on Page 31 of the board’s decision is a 105-word passage that – aside from a potential Canadian Pacific-KCS merger – slams the door shut on future Class I combinations. Yes, in just three sentences, the board explained why we’ll never see a transcontinental merger under the current review rules:

“Neither Applicants nor the Board can perfectly predict future strategic responses to a CN-KCS transaction. However, a simple geographic analysis of the rail network would suggest that a carrier in CP’s position, i.e., one that would be the smallest carrier by far after a CN-KCS combination, might need to look for potential strategic alliances, which might in turn trigger yet more strategic responses by other rail carriers,” the board wrote. “Approval of a CN-KCS voting trust could speed up downstream consolidation movements prior to the Board even having had an opportunity to assess them based on the record yet to be developed in this proceeding.”

Substitute any other combination for CN-KCS – such as BNSF Railway-Norfolk Southern or Union Pacific-CSX Transportation – and you see the problem. Any big merger would prompt the remaining railroads to seek merger partners, and the dominoes would begin to fall toward two go-everywhere systems that blanket the U.S. and Canada.

That’s not in the public interest, the STB says, because a second merger application would arrive at its front door before the board had a chance to review the first megamerger. In other words, this short passage in the board’s CN-KCS voting trust decision is, in effect, a merger moratorium."

https://www.trains.com/trn/news-rev...n-regulators-shut-the-door-to-future-mergers/

[Lenny53]

CP bid is superior

https://railfan.com/kansas-city-southern-canadian-pacific-merger-back-on/

[Missaberoad]

...and CN folds, walks away $700 million richer.

https://www.bnnbloomberg.ca/cn-rail-gives-up-on-k-c-southern-collects-us-1-4b-in-break-fees-1.1652517

[GaryHinshaw]

...the combined entity will be renamed Canadian Pacific Kansas City...

I might have gone with Kansas City del Norte. 

[Jbub]

Canadien Sol del Norte

[Missaberoad]

Keystone XL Rail 

[Jbub]

Keystone XL Rail 

No, that's Warrens train set