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CP Rail stands by bid for KCS as U.S. Justice Department opposes CN voting trust


CP Rail said it concurs with the Justice Department s objection to CN s proposed use of a voting trust because that merger with KCS would pose greater risks to competition than CP Rail s agreement with KCS.
The U.S. agency said it hasn t yet taken a final position on the merits of the proposed acquisition by CN.
However, this proposed acquisition raises sufficient competition concerns on first blush that the CN should be prohibited from using a voting trust, it said in a comment to the transportation regulator.
Even though terms of CN s voting trust are similar to CP s, the Justice Department said the STB has good reason to hold CN s trust to a higher bar, even though it disagrees with voting trusts being used at all. ....

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