KANSAS CITY SOUTHERN

(KSU)
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Delayed Nyse  -  12/13 04:10:00 pm EST
293.59 USD   -1.69%
04/28Kansas City Southern Reports Earnings Results for the First Quarter Ended March 31, 2022
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03/22Workers back on the job after CP Rail and union agree to final arbitration
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03/21Work Stoppage Saturday Initiated by TCRC, says CP; TCRC Says Wages, Pensions Remain Stumbling Blocks
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CP railroad's $31B purchase of Kansas City Southern advances

12/14/2021 | 11:45am EDT

A railroad merger nearly derailed this year by a bidding war is moving forward ahead of a final say from regulators on Canadian Pacific's $31 billion acquisition of Kansas City Southern railroad.

Canadian Pacific set up a voting trust that purchased Kansas City Southern Tuesday after shareholders of both railroads overwhelmingly approved the deal last week. The U.S. Surface Transportation Board will spend the next year reviewing the deal before deciding whether to give it final approval.

Executives for both railroads remain confident that the merger, one that will create the only railroad linking Canada, Mexico and the United States, will go through even though U.S. regulators haven't approved a major railroad merger since the 1990s.

"We are excited to reach this milestone on the path toward creating this unique truly North American railroad,” Canadian Pacific CEO Keith Creel said Tuesday.

Canadian Pacific outmaneuvered Canadian National railroad to complete the deal it first announced in March even though Canadian National offered $33.6 billion for Kansas City Southern. Canadian National lost out in the bidding war because the Surface Transportation Board rejected part of its plan to acquire Kansas City Southern.

Even though the deal is still being scrutinized, Kansas City Southern shareholders will be paid $90 cash and 2.884 Canadian Pacific shares now. Canadian Pacific is also taking on $3.8 billion of the Missouri railroad's debt.

Canadian Pacific issued 262.6 million new shares Tuesday to complete the purchase. It also took on $8.9 billion of new debt this fall to pay for the acquisition. CP said it expects to pay roughly $21 million in interest on that debt during this quarter.

But even with the deal expenses, Canadian Pacific said Tuesday that it expects its earnings per share this year to be up by a percentage in the high single digits. The railroad believes volume will be roughly flat this year after severe flooding and wildfires in British Columbia disrupted rail traffic.

Copyright 2021 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed without permission., source Associated Press News

All news about KANSAS CITY SOUTHERN
04/28Kansas City Southern Reports Earnings Results for the First Quarter Ended March 31, 202..
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03/22Workers back on the job after CP Rail and union agree to final arbitration
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03/21Work Stoppage Saturday Initiated by TCRC, says CP; TCRC Says Wages, Pensions Remain Stu..
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03/16Canadian Pacific Railway to Clarify Data Submitted to the US Surface Transportation Boa..
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03/11Amtrak Recognizes CP as Best Performing Host Railroad
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03/09CP Debuts Interline Service From Lazaro Cardenas in Mexico to Chicago
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03/03UBS on Weekly Railway Freight Volumes
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03/03Fitch Affirms Kansas City Southern at 'BBB'; Outlook Stable
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03/01Canadian National Railway Asks the Surface Transportation Board to Force the Sale of a ..
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02/01Kansas City Southern Reports Earnings Results for the Full Year Ended December 31, 2021
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Financials (USD)
Sales 2021 2 947 M - -
Net income 2021 525 M - -
Net Debt 2021 3 507 M - -
P/E ratio 2021 -
Yield 2021 0,74%
Capitalization 26 711 M 26 711 M -
EV / Sales 2020 8,65x
EV / Sales 2021 10,3x
Nbr of Employees 7 082
Free-Float 99,0%
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Managers and Directors
Patrick J. Ottensmeyer President & Chief Executive Officer
Michael W. Upchurch Chief Financial Officer & Executive Vice President
John F. Orr Senior VP & Chief Transportation Officer
Warren K. Erdman Executive VP-Administration & Corporate Affairs
Ashley A. Thorne Investor Relations Contact
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