Canadian Pacific Kansas City Limited Stock Price, News & Analysis

The North Dakota Grain Dealers Association has reiterated its support for the Canadian Pacific (CP) and Kansas City Southern (KCS) combination, opposing the bid from Canadian National (CN). In a letter to the Surface Transportation Board, the NDGDA emphasized the benefits of the CP-KCS merger, which would provide expanded market access for North Dakota grain shippers and improve competition against larger rail carriers. The association warns that the CN bid could hinder market expansion and diminish competition for grain shippers in North Dakota, who rely heavily on rail for over 80% of grain movement.

Canadian Pacific Railway reported first-quarter revenues of $1.96 billion, a 4% decrease from $2.04 billion last year. Despite this decline, diluted EPS rose 51% to $4.50, while adjusted diluted EPS increased 1% to $4.48. The operating ratio was 60.2%, an increase of 100 basis points, though adjusted OR improved 70 basis points to 58.5% after excluding acquisition-related charges. The company broke multiple records during the quarter, including in Canadian grain and automotive revenue. Guidance for 2021 indicates double-digit adjusted EPS growth.

On April 21, 2021, Canadian Pacific Railway Limited (CP) announced the successful passing of all resolutions during its annual meeting, including the election of 11 directors and a five-for-one share split. Directors received an average approval of 95.62%, with the share split garnering 99% approval. The share split, effective for shareholders recorded by May 5, 2021, will increase shares from approximately 133 million to 666 million, enhancing liquidity without altering ownership proportions. The new shares will be distributed on May 13, 2021, with no immediate tax implications for shareholders.

Canadian Pacific Railway (CP) has filed a letter with the Surface Transportation Board, urging prompt approval of its acquisition of Kansas City Southern (KCS) without further voting trust requirements. Over 400 stakeholders support the CP-KCS combination, emphasizing its benefits for competition and public interest. CP argues that a competing bid from Canadian National (CN) is inferior and would harm competition by reducing routing options. The letter advocates for the regulatory treatment of the CP-KCS transaction to reflect its straightforward nature, contrasting it with the complexities and potential anticompetitive effects of the CN proposal.

The Board of Directors of Canadian Pacific Railway Limited (TSX: CP) announced a quarterly dividend of $0.95 per share on April 20, 2021, payable on July 26, 2021. Shareholders of record as of June 25, 2021 will receive this dividend. If a proposed share split is approved on April 21, 2021, the dividend will adjust to $0.19 per share. This dividend is recognized as an 'eligible' dividend under the Canadian Income Tax Act.

Canadian Pacific Railway Limited (TSX: CP) responded to Canadian National's unsolicited offer to acquire Kansas City Southern (KCS), arguing the proposal is inferior and poses regulatory risks. CP emphasizes that its own merger with KCS would enhance competition and benefit stakeholders, with over 400 supporters backing the deal. The CP/KCS combination is expected to create new competitive routes while maintaining independent choices for customers. Shareholders are set to receive 0.489 CP shares and $90 in cash for each KCS share in the proposed deal. The STB review is anticipated to be completed by mid-2022.

Canadian Pacific Railway and Kansas City Southern announced that various stakeholders, including Bartlett Grain and the Port of Milwaukee, have filed statements with the Surface Transportation Board in support of their planned merger. Over 405 supporters have backed the combination, citing benefits such as enhanced competition, improved market access, and better service offerings. The merger is pending approval from the STB, as well as from the shareholders of both companies. The review process is expected to conclude by mid-2022.

Canadian Pacific Railway (CP) and Kansas City Southern (KCS) received support from over 405 stakeholders, including Bartlett Grain and the Port of Milwaukee, for their proposed combination. Supporters believe this merger will enhance competition and improve service offerings, transit times, and reliability for customers. CP is seeking approval from the Surface Transportation Board (STB), with the review expected to conclude by mid-2022. This merger, if approved, could strengthen CP's position in the rail market while maintaining its status as the smallest of six U.S. Class 1 railroads.

Canadian Pacific Railway Limited (TSX: CP) and Kansas City Southern (NYSE: KSU) have filed with the Surface Transportation Board (STB) to review their merger under a previously granted waiver. The companies argue that this waiver should remain effective as it promotes competition against larger Class 1 railroads. Over 375 supporters, including shippers and ports, have backed the merger for creating a seamless rail network between Canada, the U.S., and Mexico. The STB's review is expected to conclude by mid-2022.