Canadian Pacific Renews Kansas City Southern Offer


The bidding war for Kansas City Southern continues as Canadian Pacific renewed its bid the acquire the railway company. The move followed the Surface Transportation Board’s rejection of the Canadian National bid, which STB determined, “the proposed voting trust is not consistent with the public interest standard under the board’s merger regulations.” Keith Creel, Canadian Pacific President and CEO, states, “we have notified the KCS Board of Directors that our August 10 offer still stands to bring this once-in-a lifetime partnership together.” Canadian National issued a statement following the STB decision, expressing disappointment in the STB decision. Canadian National and KCS are evaluating what options are available. Meanwhile, the KCS Board of Directors will evaluate Canadian Pacific’s proposal under the terms of a merger agreement with Canadian National. Canadian Pacific has filed a proxy statement asking stockholders to vote against the proposed CN-KCS combination at the KCS stockholders meeting on September 3.