Kansas City Southern Deal to Get Regulatory Ruling by End of August
Federal railroad regulators said they plan to issue a key ruling by the end of the month that would potentially clear the way for Canadian National Railway Co. ’s $30 billion acquisition of Kansas City Southern .
The timeline for the decision approving a voting trust means that Kansas City Southern shareholders will likely cast votes next week without clear indication of whether the deal will get the blessing of the U.S. Surface Transportation Board.
Kansas City Southern has scheduled a shareholder vote for Aug. 19 on Canadian National’s offer to acquire the smaller railroad company for about $320 a share.
The creation of a voting trust, which would acquire Kansas City Southern shares, is a precursor to completing a merger. Both steps need approval from the STB, which requires major railroad combinations to be in the public interest and enhance competition.
Shareholders will have another wrinkle to consider. Canadian Pacific Railway Ltd. on Tuesday made a new, increased offer to acquire Kansas City Southern for around $300 a share, or around $27 billion not including assumed debt.
