The
It says shareholder approval at this stage would not be in the interests of KCS shareholders because of the uncertainty over whether the
The trust would allow KCS shareholders to receive payment from CN while also ensuring that the railway is run independently until the
CP says CN's proposed acquisition can be decided later, when more information is available, potentially opening the door for it to again bid to buy the railway.
Canadian Pacific received a
“CP has always said it wanted to do a friendly deal with KCS and that remains true,” stated CP chief executive
“CP would have preferred not to appeal directly to KCS’s stockholders, but given the impending vote on CN’s proposal, we believe we have no choice."
He said shareholder approval would prevent KCS shareholders from considering alternatives until CN's purchase agreement expires on
“We want to ensure KCS stockholders are aware that a vote today, without the benefit of an STB decision on the CN voting trust proposal and without a chance to consider other proposals until the spring of next year, would not be in their best interests,” Creel added.
This report by
Companies in this story: (TSX:CNR, TSX:CP)
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