KSU - Kansas City Southern gains as regulator gives procedural OK to Canadian Pacific deal

Kansas City Southern (KSU) rose 1.6% in after hours trading after the U.S. railroad regulator provided a procedural approval of Canadian Pacific's (CP) planned takeover.The Surface Transportation Board said it approved Canadian Pacific's plan to set up a voting trust in connection with its purchase of Kansas City Southern, according to a statement.The approval comes as Canadian Pacific is involved in a bidding war with Canadian National Railway (CNI), which has made an offer from Kansas City Southern at a price of $34B, compared with a $29B deal with Canadian Pacific.The STB action means that the regulator approved the structure of the takeover, though the regulator hasn't opined on if it would allow the combination from a regulatory standpoint.The STB last month affirmed it will review the KSU/CP combination under the waiver granted to KSU in 2001 to exempt it from new merger rules which the STB implemented that year.Canadian National responded

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Kansas City Southern gains as regulator gives procedural OK to Canadian Pacific deal