The Surface Transportation Board (STB) has established its timetable to consider an application by Canadian National (NYSE: CNI) to place merger target Kansas City Southern (NYSE: KSU) in a voting trust, a key development in the Canadian railroad's planned $33 billion acquisition.
Canadian National last month outbid Canadian Pacific (NYSE: CP) for Kansas City Southern, but the deal must still pass regulatory scrutiny. The railroads expect a drawn-out process to win approval, and Canadian National hopes to use a trust to provide Kansas City Southern shareholders with their compensation prior to the deal winning approval.
Image source: Canadian National.
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These Next 20 Days Could Determine If Canadian National Can Buy Kansas City Southern