CN (TSX: CNR, NYSE: CNI) today announced that it has continued to
receive support from customers, suppliers, elected officials and
other stakeholders for its proposed combination with Kansas City
Southern (NYSE: KSU) (“KCS”).
100 additional letters have been sent to CN and
filed with the Surface Transportation Board (“STB”) in favor of
CN’s proposed combination with KCS, bringing the total number of
support letters CN has received to more than 700. Of note, 66 of
the letters filed with the STB explicitly support CN’s proposed
combination with KCS, and 34 of the letters specifically ask the
Board to approve CN’s use of a voting trust. CN will continue to
communicate and engage with its customers and various stakeholders
as it works towards an agreed transaction with KCS.
A full copy of the CN’s letter filed with the
STB appears below:
|
In the two weeks
since Canadian National Railway Company (“CN”) publicly announced
its proposal for a combination with Kansas City Southern (“KCS”),
over 700 stakeholders have submitted letters publicly expressing
their support for the proposed transaction. In this filing, CN adds
100 letters to the 620 support statements that were filed last week
in CN-4, CN-9, and CN-10.1 |
|
|
|
|
66 of these letters
explicitly support the proposed combination of KCS and CN, for
reasons that echo the 620 letters that CN has previously submitted.
Customers are responding to the pro-competitive benefits of a
transaction that would provide better service options, promote
growth, and create a seamless, integrated North American railway
that can compete head-to-head with trucks for north-south
movements. |
|
|
|
|
34 of the enclosed
letters specifically focus on CN’s request that the Board approve
its voting trust agreement, and ask the Board to approve that
proposed voting trust. Many voting trust letters are from
stakeholders who support the ultimate transaction. Others are from
customers who are still evaluating the proposed combination, but
who wholeheartedly support CN’s use of a voting trust. For example,
the Chemours Company does not yet take a position on an ultimate
CN-KCS combination, but it “unequivocally supports approval of CN’s
voting trust” and urges the Board to grant CN’s request for
simultaneous review of CP’s and CN’s voting trusts to “ensure a
level playing field.”2 |
|
|
|
|
CN looks forward to
continued conversations with our customers and other interested
parties about the proposed CN-KCS combination and why it presents
the best solution for the continued growth, development and
prosperity of the North American economy. |
|
|
|
|
|
Respectfully submitted, |
|
|
|
|
Sean Finn |
/s/ Raymond A. Atkins
|
|
Olivier Chouc |
Raymond A. Atkins |
|
CN |
Terence M. Hynes |
|
935 de La Gauchetière Street West, |
Matthew J. Warren |
|
16th Floor |
Sidley Austin LLP |
|
Montreal, QC H3B 2M9 |
1501 K Street, N.W. |
|
CANADA |
Washington, DC 20005 |
|
|
(202) 736-8000 |
|
Kathryn J. Gainey |
ratkins@sidley.com |
|
CN |
|
|
601 Pennsylvania Ave, NW |
|
|
Suite 500, North Building |
|
|
Washington, DC 20004 |
|
|
Kathryn.gainey@cn.ca |
|
|
|
|
|
Counsel for Canadian
National Railway Company, Grand Trunk Corporation, and CN’s Rail
Operating Subsidiaries |
|
|
|
|
Dated: May 3, 2021 |
|
For more information about CN’s superior
proposal to combine with KCS, please visit
www.ConnectedContinent.com.
1 See Initial Submission of 409 Statements
Supporting Proposed Transaction, CN-4, Canadian National Ry.
Co.—Control—Kansas City So. et al., Fin. Docket No. 36514 (filed
Apr. 26, 2021); Submission of Port and Terminal Operators’
Statements Supporting Proposed Transaction, CN-9, Canadian National
Ry. Co.—Control—Kansas City So. et al., Fin. Docket No. 36514
(filed Apr. 29, 2021); Submission of 200 Statements Supporting
Proposed Transaction, CN-10, Canadian National Ry.
Co.—Control—Kansas City So. et al., Fin. Docket No. 36514 (filed
Apr. 29, 2021).2 See Letter of Kevin Acker on behalf of The
Chemours Company, infra at pdf pages 160-161.
About CN
CN is a world-class transportation leader and
trade-enabler. Essential to the economy, to the customers, and to
the communities it serves, CN safely transports more than 300
million tons of natural resources, manufactured products, and
finished goods throughout North America every year. As the only
railroad connecting Canada’s Eastern and Western coasts with the
U.S. South through a 19,500-mile rail network, CN and its
affiliates have been contributing to community prosperity and
sustainable trade since 1919. CN is committed to programs
supporting social responsibility and environmental stewardship.
Forward Looking Statements
Certain statements included in this news release
constitute “forward-looking statements” within the meaning of the
United States Private Securities Litigation Reform Act of 1995 and
under Canadian securities laws, including statements based on
management’s assessment and assumptions and publicly available
information with respect to KCS, regarding the proposed transaction
between CN and KCS, the expected benefits of the proposed
transaction and future opportunities for the combined company. By
their nature, forward-looking statements involve risks,
uncertainties and assumptions. CN cautions that its assumptions may
not materialize and that current economic conditions render such
assumptions, although reasonable at the time they were made,
subject to greater uncertainty. Forward-looking statements may be
identified by the use of terminology such as “believes,” “expects,”
“anticipates,” “assumes,” “outlook,” “plans,” “targets,” or other
similar words.
Forward-looking statements are not guarantees of
future performance and involve risks, uncertainties and other
factors which may cause actual results, performance or achievements
of CN, or the combined company, to be materially different from the
outlook or any future results, performance or achievements implied
by such statements. Accordingly, readers are advised not to place
undue reliance on forward-looking statements. Important risk
factors that could affect the forward-looking statements in this
news release include, but are not limited to: the outcome of any
possible transaction between CN and KCS, including the possibility
that a transaction will not be agreed to or that the terms of any
definitive agreement will be materially different from those
described; uncertainties as to whether KCS will cooperate with CN
regarding the proposed transaction; the parties’ ability to
consummate the proposed transaction; the conditions to the
completion of the proposed transaction; that the regulatory
approvals required for the proposed transaction may not be obtained
on the terms expected or on the anticipated schedule or at all;
CN’s indebtedness, including the substantial indebtedness CN
expects to incur and assume in connection with the proposed
transaction and the need to generate sufficient cash flows to
service and repay such debt; CN’s ability to meet expectations
regarding the timing, completion and accounting and tax treatments
of the proposed transaction; the possibility that CN may be unable
to achieve expected synergies and operating efficiencies within the
expected time-frames or at all and to successfully integrate KCS’
operations with those of CN; that such integration may be more
difficult, time-consuming or costly than expected; that operating
costs, customer loss and business disruption (including, without
limitation, difficulties in maintaining relationships with
employees, customers or suppliers) may be greater than expected
following the proposed transaction or the public announcement of
the proposed transaction; the retention of certain key employees of
KCS may be difficult; the duration and effects of the COVID-19
pandemic, general economic and business conditions, particularly in
the context of the COVID-19 pandemic; industry competition;
inflation, currency and interest rate fluctuations; changes in fuel
prices; legislative and/or regulatory developments; compliance with
environmental laws and regulations; actions by regulators; the
adverse impact of any termination or revocation by the Mexican
government of KCS de México, S.A. de C.V.’s Concession; increases
in maintenance and operating costs; security threats; reliance on
technology and related cybersecurity risk; trade restrictions or
other changes to international trade arrangements; transportation
of hazardous materials; various events which could disrupt
operations, including illegal blockades of rail networks, and
natural events such as severe weather, droughts, fires, floods and
earthquakes; climate change; labor negotiations and disruptions;
environmental claims; uncertainties of investigations, proceedings
or other types of claims and litigation; risks and liabilities
arising from derailments; timing and completion of capital
programs; and other risks detailed from time to time in reports
filed by CN with securities regulators in Canada and the United
States. Reference should also be made to Management’s Discussion
and Analysis in CN’s annual and interim reports, Annual Information
Form and Form 40-F, filed with Canadian and U.S. securities
regulators and available on CN’s website, for a description of
major risk factors relating to CN.
Forward-looking statements reflect information
as of the date on which they are made. CN assumes no obligation to
update or revise forward-looking statements to reflect future
events, changes in circumstances, or changes in beliefs, unless
required by applicable securities laws. In the event CN does update
any forward-looking statement, no inference should be made that CN
will make additional updates with respect to that statement,
related matters, or any other forward-looking statement.
No Offer or SolicitationThis
news release does not constitute an offer to sell or the
solicitation of an offer to buy any securities or a solicitation of
any vote or approval, nor shall there be any sale of securities in
any jurisdiction in which such offer, solicitation or sale would be
unlawful prior to registration or qualification under the
securities laws of any such jurisdiction. No offer of securities
shall be made except by means of a prospectus meeting the
requirements of Section 10 of the Securities Act of 1933, as
amended.
Additional Information and Where to Find
ItThis news release relates to a proposal which CN has
made for an acquisition of KCS. In furtherance of this proposal and
subject to future developments, CN (and, if a negotiated
transaction is agreed, KCS) may file one or more registration
statements, proxy statements, tender offer statements or other
documents with the U.S. Securities and Exchange Commission (“SEC”)
or applicable securities regulators in Canada. This news release is
not a substitute for any proxy statement, registration statement,
tender offer statement, prospectus or other document CN and/or KCS
may file with the SEC or applicable securities regulators in Canada
in connection with the proposed transactions.
INVESTORS AND SECURITY HOLDERS ARE URGED TO READ
THE PROXY STATEMENT(S), REGISTRATION STATEMENT(S), TENDER OFFER
STATEMENT, PROSPECTUS AND ANY OTHER RELEVANT DOCUMENTS FILED WITH
THE SEC OR APPLICABLE SECURITIES REGULATORS IN CANADA CAREFULLY IN
THEIR ENTIRETY IF AND WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL
CONTAIN IMPORTANT INFORMATION ABOUT CN, KCS AND THE PROPOSED
TRANSACTIONS. Any definitive proxy statement(s),
registration statement or prospectus(es) and other documents filed
by CN and KCS (if and when available) will be mailed to
stockholders of CN and/or KCS, as applicable. Investors and
security holders will be able to obtain copies of these documents
(if and when available) and other documents filed with the SEC and
applicable securities regulators in Canada by CN free of charge
through at www.sec.gov and www.sedar.com. Copies of the documents
filed by CN (if and when available) will also be made available
free of charge by accessing CN’s website at www.CN.ca.
ParticipantsThis news release
is neither a solicitation of a proxy nor a substitute for any proxy
statement or other filings that may be made with the SEC and
applicable securities regulators in Canada. Nonetheless, CN and its
directors and executive officers and other members of management
and employees may be deemed to be participants in the solicitation
of proxies in respect of the proposed transactions. Information
about CN’s executive officers and directors is available in its
2021 Management Information Circular, dated March 9, 2021, as well
as its 2020 Annual Report on Form 40-F filed with the SEC on
February 1, 2021, in each case available on its website at
www.CN.ca/investors/ and at www.sec.gov and www.sedar.com.
Additional information regarding the interests of such potential
participants will be included in one or more registration
statements, proxy statements, tender offer statements or other
documents filed with the SEC and applicable securities regulators
in Canada if and when they become available. These documents (if
and when available) may be obtained free of charge from the SEC’s
website at www.sec.gov and www.sedar.com, as applicable.
Contacts:
Media |
Investment Community |
Canada |
Paul Butcher |
Mathieu Gaudreault |
Vice-President |
CN Media Relations & Public Affairs |
Investor Relations |
(514) 249-4735 |
(514) 399-0052 |
Mathieu.Gaudreault@cn.ca |
investor.relations@cn.ca |
|
|
Longview Communications & Public Affairs |
|
Martin Cej |
|
(403) 512-5730 |
|
mcej@longviewcomms.ca |
|
|
|
United States |
|
Brunswick Group |
|
Jonathan Doorley / Rebecca Kral |
|
(917) 459-0419 / (917) 818-9002 |
|
jdoorley@brunswickgroup.com |
|
rkral@brunswickgroup.com |
|
Canadian National Railway (TSX:CNR)
Historical Stock Chart
From Mar 2024 to Apr 2024
Canadian National Railway (TSX:CNR)
Historical Stock Chart
From Apr 2023 to Apr 2024