Kansas City Southern’s (KCS) Board of Directors has deemed Canadian Pacific’s (CP) proposed merger agreement a ‘company superior proposal’.
Canadian Pacific is back in the running in its desire to merge with Kansas City Southern, following the STB's voting trust ruling for CN-KCS.
The Surface Transportation Board has unanimously decided to reject a voting trust as a mechanism in the proposed CN-KCS merger.
Kansas City Southern Board of Directors says the new Canadian Pacific offer is not superior to that made by Canadian National in May.
Canadian Pacific has increased its offer to Kansas City Southern to bring it closer to Canadian National's rival offer.
CP has urged KCS shareholders to vote against approving a merger between KCS and CN before the STB decision on a voting trust is made.
Kansas City Southern has called Canadian National's acquisition bid superior to that made by Canadian Pacific, but the US DOJ has concerns.