CP - Why Canadian National Shares Surged Higher Today
Shares of Canadian National Railway (NYSE: CNI) spiked as much as 10% higher on Tuesday after the railroad was dealt a blow to its effort to acquire rival Kansas City Southern (NYSE: KSU) . Investors appear to be betting Canadian National will do just fine even if the deal doesn't get done.
The U.S. Surface Transportation Board (STB), the regulator with oversight over railroad mergers, has rejected an application by Canadian National to establish a voting trust to help facilitate a deal with Kansas City Southern. KCS is the subject of competing bids from Canadian National and Canadian Pacific Railway (NYSE: CP) , but regulatory uncertainty has plagued both railroads' efforts to complete a deal.
Image source: Canadian National.
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Why Canadian National Shares Surged Higher Today