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Kansas City Southern delays vote on $33.6B rail takeover bid

KC Southern, Canadian Pacific.PNG
Posted at 8:26 AM, Aug 18, 2021
and last updated 2021-08-18 09:26:51-04

OMAHA, Neb. (AP) — Kansas City Southern will delay this week’s planned shareholder vote on Canadian National’s $33.6 billion offer to buy the railroad because regulators haven’t ruled on a key part of the acquisition plan.

The vote scheduled for Thursday was put on hold while investors wait to hear whether the U.S. Surface Transportation Board will approve Canadian National’s plan to use a voting trust as part of the acquisition.

Without that approval, the deal may fall apart. The STB has said it expects to rule by Aug. 31.

If the CN deal gets derailed, Canadian Pacific railroad is waiting in the wings with a competing $31 billion offer to purchase Kansas City Southern.