CN fires newest salvo
The Canadian Press – Apr 23, 2021 / 10:30 am | Story: 331869
Photograph: The Canadian Press
On this Nov. 5, 2004 file photograph, the brand of Kansas Metropolis Southern is down on a restored 1954 Kansas Metropolis Southern passenger locomotive at Union Station in Kansas Metropolis, Mo. THE CANADIAN PRESS/AP-Norman Ng/The Kansas Metropolis Star by way of AP
Canadian Nationwide Railway Co. says it has filed a letter with the U.S. regulator that governs railway mergers declaring its bid for the Kansas Metropolis Southern railroad to be pro-competitive and within the public curiosity.
CN’s letter says it additionally goals to “right deceptive statements” in a letter rival Canadian Pacific Railway Ltd. reported sending to the U.S. Floor Transportation Board on Thursday, wherein it once more known as CN’s supply ““illusory” and “anticompetitive.”
On Tuesday, Montreal-based CN introduced a cash-and-stock bid valued at US$33.7 billion for Kansas Metropolis, Mo.-based KCS, topping one made final month by Calgary-based CP Rail valued at US$25 billion.
The 2 Canadian railways have been buying and selling barbs since then, with CP insisting a CN-KCS merger cannot be accepted as a result of CN is way bigger than CP and its community has extra overlap with KCS, and CN arguing that its supply is “superior” for each traders and shippers and due to this fact within the public curiosity.
CP says that greater than 400 shippers have filed letters supporting its bid. In its letter Friday, CN says it has spoken to quite a few prospects and different stakeholders since asserting its supply and lots of need to write letters of assist which CN will share with the STB “in coming days.”
The 2 do not even agree on how huge a CN-KCS mixture could be — CN says it could be the fifth largest Class 1 railway (counting solely U.S. operations ruled by the STB), whereas CP says it could be third-largest should you rely income from all belongings in Canada, Mexico and america.
KCS’s rail belongings in Mexico have lengthy made it a fascinating takeover goal.
“CN is assured that KCS will acknowledge the worth of the CN proposal and can select to companion with CN,” says the CN letter despatched Friday.
“However that could be a selection for KCS and its shareholders to make. Beneath the phrases of the KCS-CP merger settlement, CP has the chance to make a aggressive counteroffer if it needs and to make its pitch to KCS for why such a counteroffer could be superior.”