Canadian National Makes Final Appeal for Acquisition of Kansas City Southern dtnpf.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from dtnpf.com Daily Mail and Mail on Sunday newspapers.
CP’s letter, reproduced below in full, comes three days after CN proposed a voting trust using the same trustee, former KCS President and CEO Dave Starling. “STB has already decided that CP’s proposed use of a voting trust is subject to the pre-2001 merger rules, which entails different standards and processes than those governing CN proposal for review under current regulations,” CP said.
The letter is from whom many industry observers say is arguably one of the best railroad regulatory attorneys in practice today, David L. Meyer:
The Honorable Cynthia T. Brown Chief, Section of Administration, Office of Proceedings Surface Transportation Board 395 E Street S.W. Washington, DC 20423
CP, KCS Advocate for Waiver ‘Right’
CP, KCS Advocate for Waiver ‘Right’ Written by Marybeth Luczak, Executive Editor
Canadian Pacific (CP) and Kansas City Southern (KCS) submitted a filing to the Surface Transportation Board (STB) asserting what they say is their “right” to have their merger reviewed under a waiver the STB granted to KCS in 2001.
CP and KCS’s new filing was “made in response to objections to the application of the KCS waiver that were filed with the STB by competitors and others,” the Class I railroads said in an announcement released late on April 12.
The railroads explained that “STB granted KCS, the smallest of the Class I railways, an exemption from the new merger rules in 2001 because a combination involving KCS did not raise the same concerns that any transaction between the larger six Class I’s might create.”