Canadian Pacific Kansas City Limited Stock Price, News & Analysis

On May 10, 2021, Canadian Pacific Railway Limited (NYSE: CP) announced that nearly 550 stakeholders have filed support statements with the Surface Transportation Board for its merger with Kansas City Southern (KCS). This support underscores expectations of enhanced competition and improved transit in North America. Recent STB rulings have favored CP's transaction, allowing the use of a voting trust and waiving certain regulatory conditions. The anticipated completion of the review is mid-2022, pending requisite shareholder approvals.

Canadian Pacific Railway Limited (TSX: CP) has received approval from the Surface Transportation Board (STB) for a voting trust related to its merger with Kansas City Southern (KCS). This decision marks a significant step towards finalizing the $29 billion merger. Following the approval, CP is moving ahead with the merger application and proxy filing for shareholder votes. The STB decision allows KCS to operate independently during the regulatory review, overseen by a trustee. Stakeholders are encouraged to monitor developments on this historic transaction.

Canadian Pacific Railway Limited (CP) announced that over 110 letters were filed with the Surface Transportation Board expressing concern about Canadian National's (CN) proposal for Kansas City Southern (KCS). Stakeholders argue that the CN-KCS combination could harm competition in the North America corridor. In contrast, the CP-KCS merger is viewed as beneficial, promising improved market access and competition. The STB is currently reviewing the CP-KCS transaction, expected to conclude by mid-2022, with nearly 500 letters of support received for CP's proposal.

Canadian Pacific Railway Limited (CP) filed a formal objection to the U.S. Surface Transportation Board, arguing that the Canadian National (CN) proposal to acquire Kansas City Southern (KCS) should not receive a waiver of STB's merger rules. CP asserts that the CN/KCS transaction fails to meet the criteria for the waiver, highlighting that CN is significantly larger than CP, which would destabilize rail competition. They emphasize six main points, including market overlap concerns, heightened acquisition premiums, and potential harm to competition, reinforcing the benefits of the CP/KCS combination.

On April 27, 2021, Canadian Pacific Railway Limited (TSX: CP) submitted a letter to the Surface Transportation Board (STB) regarding its proposed voting trust arrangement for the acquisition of Kansas City Southern (KCS). CP contends that its voting trust should follow pre-2001 merger rules, differing from Canadian National's (CN) proposal, which is subject to current regulations. CP argues that CN's proposed voting trust risks competition due to direct overlaps between the two companies. CP highlights that its proposal effectively insulates KCS from premature control, whereas CN's approach poses significant public interest concerns.

On April 26, 2021, Canadian Pacific Railway Limited (CP) expressed concerns about Canadian National's (CN) proposed acquisition of Kansas City Southern (KCS). CP argues that the merger would significantly reduce competition, particularly across key routes and corridors that both railroads share. CP claims that the loss of competition would impact shippers' options, with a Cowen survey indicating 45% of shippers view the CN merger negatively. CP emphasizes that the CN proposal is misaligned with regulatory perspectives and poses risks for the competitive landscape. The letter advocates for CP's transaction with KCS as a superior option.

Canadian Pacific Railway (CP) acknowledges Canadian National's (CN) request to name David Starling as trustee in its unsolicited bid for Kansas City Southern (KCS). While CP has no objection to this choice, it highlights significant differences between the two proposals. CP points out that CN's use of a voting trust does not resolve competitive concerns between CN and KCS, which the Department of Justice has flagged. CP's transaction with KCS is expected to result in fewer regulatory challenges due to its alignment with existing waivers.

On April 24, 2021, Canadian Pacific Railway Limited (TSX: CP) addressed Kansas City Southern's (KCS) review of Canadian National's (CN) unsolicited proposal. CP emphasized that KCS's board is fulfilling its obligations under their merger agreement by evaluating CN's offer. CP's President and CEO, Keith Creel, expressed confidence that KCS will recognize the risks of the CN proposal compared to the benefits of a CP-KCS merger. CP highlighted various concerns regarding CN's offer, including regulatory risks and KCS's shareholders' interests in a potentially inferior deal.

Canadian Pacific Railway Limited (TSX: CP) announced that the Surface Transportation Board (STB) confirmed the applicability of a 2001 waiver for the proposed merger with Kansas City Southern (KCS). The STB's decision indicates that the merger, which would form the smallest Class I railroad by U.S. operating revenues, has minimal competitive overlap. With over 415 stakeholders supporting the merger, CP aims to create a competitive rail network across North America. The STB review is expected to be completed by mid-2022, pending regulatory and shareholder approvals.