Kansas City Southern shareholders will have to wait until September 3rd to weigh in on the railway’s proposed acquisition by Canadian National. The KCS board announced Thursday morning that the special shareholder meeting that had been set for this morning would be adjourned, pending a ruling from the Surface Transportation Board concerning the proposed $33.6 billion merger. At issue is whether Canadian National can establish a voting trust with which to acquire KCS shares. The STB had announced last week they were planning to render their decision by the end of August.
A rival bid worth $31 billion from Canadian Pacific is also on the table. CP applauded the adjournment, arguing in their statement that allowing Canadian National to establish a voting trust is not in the public interest and would result in less competition. The Kansas City Southern board continues to recommend shareholders support the merger agreement established in May with Canadian National, while two independent firms had recommended that shareholders abstain.