Amtrak and Other Groups Oppose the Canadian National Merger With Kansas City Southern
Canadian National says it now has more than 1,700 letters of support for its proposed merger with Kansas City Southern.
But in a flurry of regulatory filings submitted before a deadline on Monday, opposition grew to CN’s plan to put KCS in a voting trust while the merger is under review. Major shipping associations, rail labor, Amtrak, and spurned KCS suitor Canadian Pacific all wrote the Surface Transportation Board urging it to reject CN’s voting trust application.
The voting trust is an important first step in the merger process. Once KCS is placed into a voting trust, KCS investors will receive the equivalent of $325 per share in cash and CN shares. While in trust, KCS also would be operated independently while the STB reviews the merger over the next year or so.
