Canadian Pacific Railway Ltd. is urging Kansas City Southern shareholders to vote against the proposed merger with Canadian National Railway Co. because of the regulatory uncertainty of its rival's $33.6-billion US bid. The Calgary-based railway made the request in a regulatory filing ahead of the U.S. railway's special meeting on Aug. 19. It says shareholder approval at this stage would not be in the interests of KCS shareholders because of the uncertainty over whether the U.S. regulator will approve CN's request for a CN voting trust. The trust would allow KCS shareholders to receive payment from CN while also ensuring that the railway is run independently until the Surface Transportation Board rules on the merger itself. He said shareholder approval would prevent KCS shareholders from considering alternatives until CN's purchase agreement expires on Feb. 21.

Source: CBC News July 30, 2021 18:56 UTC