STB approves voting belief for Canadian Pacific’s proposed acquisition of Kansas Metropolis Southern By Reuters
(Reuters) – The U.S. Floor Transportation Board (STB) on Thursday accepted the voting belief for Canadian Pacific (NYSE:) Railway’s proposed acquisition of Kansas Metropolis Southern (NYSE:) railroad .
Canadian Pacific (CP) had earlier agreed in its talks with U.S. railroad Kansas Metropolis Southern (KCS) to bear a lot of the threat of the merger deal not going via. It was going to purchase KCS shares and place them in an impartial voting belief, insulating the acquisition goal from its management till the STB, which oversees freight rail, clears the deal.
“As a way to shut into voting belief, the transaction requires approval from shareholders of each firms together with satisfaction of customary closing situations,” CP mentioned in an announcement on Thursday.
“CP would then purchase KCS shares and place them into the voting belief, at which level KCS shareholders will obtain their consideration”, Canadian Pacific mentioned.
CP and its bigger rival Canadian Nationwide are in race to take over KCS, which might create the primary direct railway linking Canada, U.S. and Mexico.
CN mentioned on Thursday that it was inspired by the STB’s resolution to approve the voting belief and maintained that it had introduced a greater bid.
Final month, the U.S. STB granted a waiver to CP’s $25 billion agreed bid for Kansas Metropolis Southern, which suggests the deal wouldn’t be subjected to the more durable railroad merger guidelines the regulator put in place in 2001.
CN mentioned on April 20 it had provided to purchase KCS railroad for about $33.7 billion.
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