U.S. Rep. Peter DeFazio, D-Oregon, sent a letter to the Surface Transportation Board (STB) opposing the approval of a trust for the proposed merger of the Canadian National (CN) and Kansas City Southern (KCS) railroads.
The largest merger of two railroad companies in two decades will mean more freight train traffic throughout Illinois. A former transportation official wants a thorough review done on how it will affect communities.
By Dr. William Huneke Canadian National Railway Company’s (CN) offer to keep gateways open on commercially reasonable terms is not getting the attention that it is due. This offer is a key part of its proposal to combine with Kansas City Southern (KCS)—a transaction which significantly enhances competition. CN’s open gateways offer is a big deal. It means new, enhanced rail-to-rail competition. But for this to even be considered, the STB must first approve the CN/KCS voting trust. I was STB’s chief economist for 10 years, and I am surprised by the lack of attention to the open gateways commitment.
The Kansas City Southern Board of Directors has determined CN’s proposal to be a “Company Superior Proposal” and plans to terminate its announced March 21 merger agreement with Canadian Pacific Railway.
Kansas City Southern’s Board of Directors unanimously determined that Canadian National Railway’s unsolicited proposal could reasonably be expected to lead to a “Company Superior Proposal” as defined in KCS’s merger agreement with Canadian Pacific Railway.
Canadian National Railway submitted an unsolicited proposal to acquire Kansas City Southern in a cash and stock transaction valued by CN at $325 per KCS share.