CNI - After a Derailed Merger Canadian National Gets Back on Track
Canadian National Railway (NYSE: CNI) delivered a clear message that the company is moving on following its failed attempt to acquire Kansas City Southern (NYSE: KSU) , reporting strong third-quarter results and announcing a management transition that should help appease a disgruntled shareholder.
The railroad has taken investors on a wild ride this year, in April launching an unsolicited $33 billion effort to break up Kansas City Southern's planned acquisition by Canadian Pacific (NYSE: CP) . Canadian National temporarily secured Kansas City Southern's backing, but the target eventually returned to Canadian Pacific after U.S. regulators expressed concerns about the competitive impact of a Canadian National/Kansas City Southern deal.
The merger drama was a distraction for what has historically been a well-run railroad , and Canadian National's latest results are a reminder that the company remains on track to be an outperformer even without the added heft of the Kansas City Southern rails.
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After a Derailed Merger, Canadian National Gets Back on Track