Railroad News

CN announced today that Kansas City Southern has provided notice of termination of the previously announced May 21, 2021, definitive merger agreement with CN.

The notice was provided after the KCS board determined on Sept. 12 that an updated acquisition proposal from Canadian Pacific was "superior" to CN’s offer to merge with KCS. Today, CP and KCS announced they have entered into a merger agreement, under which CP has agreed to acquire KCS in a stock and cash transaction representing an enterprise value of approximately $31 billion, which includes the assumption of $3.8 billion of outstanding KCS debt.

TCI Fund Management Ltd., one of CN's largest shareholders, has formally started a proxy fight to replace the Class I’s chief executive officer and some board members over the failed attempt to acquire Kansas City Southern.

TCI, which owns a 5% state in CN and opposed the railroad’s proposed merger with KCS, yesterday announced it is calling for a special meeting of CN shareholders for the purpose of adding four new members to the board who will "provide the deep railroad experience the current board lacks," according to a TCI press release.