U.S. railway regulator approves CP Rail voting trust for KCS; CN Rail expects same
|CTVnews 06 May 2021 at 19:39|
The Surface Transportation Board described Canadian Pacific s trust agreement as "warranted" and "acceptable with some modifications."
The decision announced Thursday follows its earlier agreement that the transaction would be governed by a waiver KCS received in 2001.
The STB s latest ruling allows KCS shareholders to receive cash and shares of CP and for its shares to be transferred to an independent trust once shareholders of both railways approve the transaction.
Meanwhile, rival bidder Canadian National Railway says it is encouraged by the STB s decision to approve CP s voting trust and is confident the regulator will reach the same decision about CN s "identical voting trust."
"Approving both voting trusts will allow KCS to choose the bid it judges to be best for its shareholders," it said in a news release.