CP Won't Object to Rival CN Naming David Starling as Trustee in Bid for Kansas City Southern
April 26 2021 - 08:46AM
Dow Jones News
By Robb M. Stewart
Canadian Pacific Railway Ltd. said it doesn't object to a
request by Canadian National Railway Co. to name David Starling as
trustee in its rival takeover bid for Kansas City Southern.
CP Monday said Mr. Starling was a good choice as a trustee,
which is why it appointed him to the role in its own agreed offer
for Kansas City Southern, though it said it didn't address alleged
problems in CN's proposed use of a voting trust in its bid.
On Saturday, the Kansas City-based railway said it agreed to
negotiate with CN and provide the company with nonpublic
information, though it remains bound by the terms of its merger
agreement with CP. Its board hasn't ruled that CN's cash and stock
offer worth $325 a share is superior to CP's earlier offer, valued
at $275 a share, but had determined it could reasonably be expected
to lead to a superior proposal.
CN said it has overwhelming support for its plan from more than
400 customers, suppliers, elected officials and others who have
filed letters with the Surface Transportation Board in favor of it
buying Kansas City Southern. Late last week, CP said 416 shippers
and other parties had filed statements with the STB in support of
its planned combination with Kansas City Southern.
CN has offered roughly $30 billion for Kansas City Southern, the
smallest of the five major freight railroads in the U.S., including
$200 in cash and 1.059 CN shares for each Kansas City Southern
share. CP has agreed to pay $275 a share, including $90 in cash, in
an about $25 billion deal reached last month.
Write to Robb M. Stewart at robb.stewart@wsj.com
(END) Dow Jones Newswires
April 26, 2021 09:31 ET (13:31 GMT)
Copyright (c) 2021 Dow Jones & Company, Inc.
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