CALGARY — Canadian Pacific Railway Limited has completed the transaction to acquire Dakota, Minnesota & Eastern Railroad Corporation and its subsidiaries (DM&E). The agreement was previously announced on Sep. 4, 2007.
The transaction is subject to review and approval by the U.S. Surface Transportation Board (STB), pending which the shares of DM&E have been placed into an independent voting trust. The voting trust is required by US law so that CP does not exercise control over DM&E prior to approval of the transaction by the STB.
CP announced that Mr. Richard Hamlin has been appointed as the trustee during the review period. Mr. Hamlin is a private consultant with over 30 years of experience serving major transportation companies. He is a retired National Director for the Transportation Practice of KPMG LLP and has served as past Chairman of the American Institute of CPA’s (AICPA) Transportation Committee and of its Railroad and Trucking Task Forces. He has also served on the executive committee of numerous councils of the American Trucking Associations (ATA).
CP has developed a solid transition plan which focuses on safety and customer service that it will, subject to any requirements imposed by the STB, implement upon receipt of STB approval of the acquisition. The DM&E will become part of CP’s overall U.S. network upon receipt of STB approval. The STB review process is expected to take less than a year.