KCS Shareholder Vote on CN Merger Set for Sept. 3

Kansas City Southern shareholders will vote on Sept. 3 on the proposed merger of the railroad with Canadian National.

The vote had been set for Aug. 19 but was moved to September to allow shareholders to review a U.S. Surface Transportation Board ruling on CN’s bid to place KCS in a voting trust while the merger of Class 1 railroads is being reviewed by federal regulators.

The STB has said it expected to rule on the voting trust by Aug. 31.

 “All stockholders of record of KCS common stock and KCS 4 percent non-cumulative preferred stock as of the close of business on July 1, 2021 will be entitled to vote their shares at the special meeting,” KCS said in a statement.

CN proposed acquiring KCS in May that was later approved by the KCS board of directors in a unanimous vote.

The CN bid had been reported to be acquiring KCS in a stock and cash transaction valued at $325 per common share, implying a total enterprise value of $33.6 billion, including the assumption of approximately $3.8 billion of KCS debt.

KCS stockholders will receive $200 in cash and 1.129 shares of CN common stock for each KCS common share.

The KCS board is urging shareholders to ratify the CN acquisition proposal.

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