Canadian Pacific buying Kansas City Southern?

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Just-Thinking-51

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Wild thought, but with CN already own a line to the gulf would a there not be a easy solution that both CN and CP can have a route to Houston. With the Mexican route being spun off as a independent line from Mexico that interchange with any and all in Houston. Not sure the value to the shareholders would be, the plus side for everyone else is high.
 

neroden

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CN's initial offer is no good. STB is going to follow DOJ advice here.

Time for the next round of offers. My bet: the final result is no merger at all.
 
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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.
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...
 

jiml

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These are two bratty kids who don't get along in their home sandbox. ;)

I see it going one of two ways. Either CP will raise their offer (doesn't have to be quite as high as CN's) and use their existing approval to proceed or one of the two will partner with a US Class 1 to share. Now it's just a matter of going through the list to see who plays nice with whom.
 

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MisterUptempo

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KCS kicks CP out of love nest...

Merger update: KCS terminates CP deal; CP to seek STB authority for control of KCS

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.

---SNIP---

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.
More at Progressive Railroading.



 
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