WLTW - Canadian National's planned acquisition of Kansas City Southern more likely to be rejected by U.S. regulator survey says

Canadian National Railway's (NYSE:CNI) more than $30B planned purchase of Kansas City Southern (NYSE:KSU) is more likely to be rejected by the U.S. regulator that is deciding on the fate of the deal, according to a survey. The U.S. Surface Transportation Board could any time decide if it will allow the voting trust structure that Canadian National is asking for approval of the deal. Rival bidder Canadian Pacific (NYSE:CP), which originally struck a deal with Kansas City Southern, won approval from the STB for the voting trust in May. Wolf Research analyst Scott Group in a July 19 note wrote that he expected the STB to rule on the voting trust structure around the end of July. More than half of the respondents in a small survey of investors/analysts done by Seeking Alpha in recent days said that the deal was likely to be rejected, while a few saw a 50/50 chance of approval.

For further details see:

Canadian National's planned acquisition of Kansas City Southern more likely to be rejected by U.S. regulator, survey says