(Calgary) Canadian National Railways (CN) American Kansas City South (KCS) shareholders will have to wait a while before voting on its acquisition bid.
The U.S. Rail Service plans to delay the August 19 referendum if the Surface Transport Board (STB), the head of rail links in the United States, does not make a decision at CN’s request. Terminate the contract.
The Trust will hold KCS shares while the transaction is under consideration, which will allow US shareholders to receive a full applicable fee without waiting for STB approval, which will last until the transaction is completed.
The STP said it would vote by the end of the month.
Although the Canadian Pacific (CB) has returned to the burden by improving its proposal, CNS ‘Board of Directors considers CN to be the most favorable.
The Alberta Railways proposal puts the U.S. rail carrier at $ 31 billion. CN pays the Missouri-based company US $ 33.6 billion.
Ever since he saw his Montreal rival mortgage him, CB has been very favorable to KCS shareholders by arguing that its acquisition effort, albeit a little less, is less of a control risk.
Lee received permission from the STP last May to set up a voting trust before KCS returned to CNS’s project. In addition, the connection between CP and KCS will be assessed under less stringent rules.