THE Canadian Pacific Railway has welcomed the Surface Transportation Board's (STB) decision to refuse Canadian National (CN) and Kansas City Southern's (KCS) merger plan because it would be bad for shippers, the rail freight industry and the economy.
'The STB decision clearly shows that the CN-KCS merger proposal is illusory and not achievable,' said CP President and CEO Keith Creel. 'Today, we have notified the KCS board that our August 10 offer still stands to bring about this once-in-a lifetime partnership together.'
Mr Creel said CP had always maintained that the CN-KCS combination and the proposed CN voting trust was not in the public interest.
'Hundreds of rail shippers, community leaders, elected officials and other stakeholders have voiced those same concerns and today the STB agreed,' he said.
Said the STB: 'The board finds that (CN and KCS) have not demonstrated that their use of a voting trust would be consistent with the public interest. Applicants have shown no benefit from the use of a voting trust to stakeholders other than KCS and CN. '
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'The STB decision clearly shows that the CN-KCS merger proposal is illusory and not achievable,' said CP President and CEO Keith Creel. 'Today, we have notified the KCS board that our August 10 offer still stands to bring about this once-in-a lifetime partnership together.'
Mr Creel said CP had always maintained that the CN-KCS combination and the proposed CN voting trust was not in the public interest.
'Hundreds of rail shippers, community leaders, elected officials and other stakeholders have voiced those same concerns and today the STB agreed,' he said.
Said the STB: 'The board finds that (CN and KCS) have not demonstrated that their use of a voting trust would be consistent with the public interest. Applicants have shown no benefit from the use of a voting trust to stakeholders other than KCS and CN. '
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