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CP Files Objection To Canadian National Using Merger Waiver That STB Granted To CP/KCS Deal

Canadian Pacific Railway Limited (CP,CP.TO) said that it filed a formal objection with the Surface Transportation Board or "STB" stating that Canadian National Railway (CNR.TO,CNI) or CN does not qualify for a waiver of the STB's rules for major transactions with respect to CN's unsolicited proposal for Kansas City Southern (KSU) or "KCS".

In its letter, CP explained that the CN/KCS transaction does not satisfy any of the criteria that the STB relied upon in finding that the waiver should apply to a CP/KCS transaction, which the STB granted to CP on April 23, 2021.

In March, Canadian Pacific Railway agreed to acquire Kansas City Southern in a stock and cash transaction representing an enterprise value of about $29 billion. The deal included the assumption of $3.8 billion of outstanding Kansas City Southern debt.

In April, Canadian National Railway made a proposal to buy Kansas City Southern in a cash-and-stock transaction valued at $33.7 billion, including $3.8 billion of KCS debt.

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