American railway regulator the Surface Transportation Board has blocked Canadian National Railway's bid to buy Kansas City Southern in its current form because the deal would include a voting trust that runs afoul of the rules. But CP has the advantage that the Surface Transportation Board has no objection to its offer despite incorporating a voting trust structure of its own. The voting trust in question is a structure ostensibly set up by CN to keep Kansas City Southern's assets independent and while the deal gets ironed out, but the regulator's ruling says in its current form, such a voting trust runs afoul of regulations. Amtrak had opposed CN's voting trust, saying its pledge to divest the Baton Rouge to New Orleans line will harm future passenger service in Louisiana. The railway had no immediate comment on the STB ruling, but previously said it is committed to working out any issues that arise.

Source: CBC News August 31, 2021 18:50 UTC