KCS Shareholders to Vote on CN Merger

Shareholders of Kansas City Southern will vote on Aug. 19 on the proposed merger with Canadian National.

CN has proposed paying KCS shareholders $200 cash per share of stock and to give them 1.129 shares of CN common stock for each KCS comman share. That would give KCS common shareholders 12.65 percent ownership of the combined company.

KCS’s preferred stockholders would receive $37.50 in cash for each preferred share.

Voting will be open to all stockholders of record of KCS common stock and 4 percent non-cumulative preferred stock as of the close of business on July 1, 2021.

The KCS board of directors has unanimously recommended that shareholders accept the CN merger agreement.

CN has proposed placing KCS stock into a voting trust that is being reviewed by the U.S. Surface Transportation Board.

KCS stockholders would receive the merger consideration immediately upon the closing into CN’s voting trust, which is expected to be in the second half of 2021, the companies said in a news release.

The voting trust would be in effect while the STB considers the CN-KCS merger application.

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