SMART-TD on CPKC: Waiver OK, Keep Our Protections
SMART-TD on CPKC: Waiver OK, Keep Our Protections Written by Marybeth Luczak, Executive Editor
SMART Transportation Division (SMART-TD) President Jeremy R. Ferguson has sent a letter to Canadian Pacific (CP) President and CEO Keith Creel stating that the union he runs generally supports what CP and Kansas City Southern (KCS) are seeking from the Surface Transportation Board for their merger.
SMART Transportation Division President Jeremy R. Ferguson
“Historically speaking, this type of transaction that is an ‘end to end merger’ has had very little adverse impact on SMART-TD membership and expands our ability for job security and economic longevity with the newly formed carrier,” Ferguson wrote in the April 14 letter (download below). “It is therefore the position of my office, currently, that we have no opposition to the Board (Surface Transportation Board) moving forw
Kansas City Southern(NYSE: KSU) will interfere with how regulators review the merger.
To facilitate the merger, CP and Kansas City Southern (KCS) plan to establish a voting trust to acquire KCS shares, pending shareholder approval. CP says that putting KCS shares in a voting trust will insulate KCS from control by CP until the Surface Transportation Board (STB) reviews the merger. CP contends the trust will enable KCS to pursue its independent business and growth plans.
Once STB completes its review of the proposed acquisition, both companies would be integrated, according to CP.
DOJ s Take
But in a Monday filing to STB, DOJ s acting assistant attorney general for the antitrust division cautioned against the use of a voting trust because of competition concerns surrounding the merger.
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