UK hedge fund manager Chris Hohn has demanded that Canadian National (CN) abandon its current US$34 billion pursuit of US railway rival Kansas City Southern, reported The Financial Times.
TCI has taken issue with CN’s plan to create a voting trust, whereby shareholders in KCS would be paid before the transaction had received full approval from the Surface Transportation Board, the main railway regulator.
Voting trusts are vehicles that allow a buyer of an asset to immediately pay the shareholder of the target company, while regulators investigate the merger proposal. During this process the companies seeking to merge continue to be operated independently.
In March, rival Canadian Pacific (CP) agreed to pay US$29 billion in cash and stock to buy KCS, in a deal that also included the use of a voting trust. TCI is also the largest shareholder in CP, with an 8.4% stake worth US$4.3 billion, according to S&P Capital IQ.
Last week, CN made a US$34 billion cash-and-stock offer that the board of KCS stated was superior to the existing agreement with CP. KCS stated that it had notified CP that it had until this Friday, May 14, to improve its offer or it would terminate that deal in favor of the CN bid.
Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.
Featured News
T-Mobile’s Acquisition of Ka’ena Corporation Receives FCC Approval
Apr 26, 2024 by
CPI
UK Regulator Announces Two New Senior Executive Appointments
Apr 26, 2024 by
CPI
Paramount Global and Skydance Media Near Merger Deal, Eyeing CEO Change
Apr 26, 2024 by
CPI
BHP Unveils £31bn Mining Megamerger Proposal with Anglo American
Apr 25, 2024 by
nhoch@pymnts.com
ByteDance Prefers Shutdown Over Sale of TikTok Amid US Ban Threats
Apr 25, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – Economics of Criminal Antitrust
Apr 19, 2024 by
CPI
Navigating Economic Expert Work in Criminal Antitrust Litigation
Apr 19, 2024 by
CPI
The Increased Importance of Economics in Cartel Cases
Apr 19, 2024 by
CPI
A Law and Economics Analysis of the Antitrust Treatment of Physician Collective Price Agreements
Apr 19, 2024 by
CPI
Information Exchange In Criminal Antitrust Cases: How Economic Testimony Can Tip The Scales
Apr 19, 2024 by
CPI