You're probably correct, but a "Conrail" sort of solution (splitting it between them), is within the realm of possibilities. As a Conrail stockholder, I was very much opposed to that, but not for financial reasons, as most CR stockholder's were for it...In a May 14 filing with the Surface Transportation Board, the United States Department of Justice has said CN’s application for a voting trust to acquire Kansas City Southern should be denied, because the proposed merger “raises sufficient competition concerns.”www.railwayage.com
CN's initial offer is no good. STB is going to follow DOJ advice here.Your
Time for the next round of offers. My bet: the final result is no merger at all.
More at Progressive Railroading.Kansas City Southern today announced that its board has unanimously determined that the acquisition proposal it received from CN on May 13 continues to constitute a “company superior proposal” under KCS’s pending merger agreement with Canadian Pacific.
As a result, KCS terminated the CP merger agreement and entered into a merger agreement with CN, KCS officials said in a press release.
In connection with the termination of the CP merger agreement, KCS paid CP a breakup fee of $700 million, which will be reimbursed by CN. KCS will be obligated to refund this amount under certain limited circumstances, including if KCS terminates the CN merger agreement to accept a superior proposal.
In response to the KCS board’s decision to terminate the merger agreement, CP officials today said they’ve sent a letter to the STB indicating the company will pursue board review of an application to control KCS.
CP’s letter outlines why it believes that pursuing its STB application is in the best interests of KCS and the public so that the “pro-competitive” CP+KCS combination can proceed to be reviewed, CP officials said in a press release.
“CP intends to proceed to prepare and file its application in this docket seeking [STB] authority to control KCS and its U.S. rail carrier subsidiaries,” the letter states.