The US railway regulator stated that the public has 20 days to voice their feelings about a proposed Canadian National Railway (CN) voting trust relating to its proposed acquisition of Kansas City Southern (KCS).
The Surface Transportation Board (STB) stated it will accept written submissions until June 28 with the Montreal-based CN replying July 6, reported Yahoo.
The US railway’s board backed a merger offer from Canadian National that implies an enterprise value for KCS of US$33.6 billion.
Approval of the voting trust would allow KCS shareholders to receive US$325 per share in stock and cash if they approve the transaction without waiting for the deal itself to be approved.
KCS would be independently managed pending completion of the STB’s review of the proposed transaction. CN announced that it has received more than 1,400 letters of support, including nearly 300 filed June 2 backing the use of the voting trust.
“We are confident that the STB will approve our voting trust and allow us to complete the transaction so that we can deliver the many compelling benefits of this combination to customers, ports, employees, communities and the environment,” the railway stated in a news release.
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