(Reuters) - The U.S. rail regulator on Tuesday rejected a voting trust structure that would have allowed Canadian National Railway Co to proceed with its $29 billion proposed acquisition of U.S. peer Kansas City Southern.
Following the Surface Transportation Board's (STB) rebuff, Kansas City Southern has adjourned a shareholders meeting that was set to vote on its deal with Canadian National. On the other hand, Canadian Pacific Railway's chief executive officer said the company would not offer Kansas City $300 per share should the U.S. railroad operator's board fail to decide on the offer by its Sept. 12 deadline.
Below are the events that unfolded over several months as Canadian National and Canadian Pacific locked horns to take control of Kansas City Southern to create the first railway spanning the United States, Mexico and Canada, as they stand to benefit from a pick-up in trade.
Canadian Pacific agreed to acquire Kansas City Southern in a $25 billion cash-and-stock deal, which would be the largest ever combination of North American railways by transaction value.
Farm groups said Canadian Pacific's deal to buy Kansas City Southern would create a rail network from Canada to Mexico that could smooth the flow of their goods to market.
Canadian National offered to buy Kansas City for about $33.7 billion, trumping Canadian Pacific's buyout offer for the railroad operator. Canadian National said it was willing to match the terms of Canadian Pacific's offer for Kansas City...
Read Full Story: https://money.usnews.com/investing/news/articles/2021-09-01/the-unfolding-of-the-kansas-city-southern-takeover-saga
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