beaulieu What I find interesting is that CN shareholders will not have a vote on this acquisition/merger. Mr. Pace and Mr Ruest are spending $33 billion USD of the shareholder's equity and they won't have a say.
What I find interesting is that CN shareholders will not have a vote on this acquisition/merger. Mr. Pace and Mr Ruest are spending $33 billion USD of the shareholder's equity and they won't have a say.
Did CP put their proposal to a shareholder vote before publicly announcing their merger agreement?
It is also worth noting that TCI is CP's largest shareholder, at least as of last fall.
https://www.freightwaves.com/news/tci-fund-management-seeks-climate-action-from-cp-and-cn
Greetings from Alberta
-an Articulate Malcontent
I am going to make a prediction here, that the STB will deny the use of a Voting Trust to CN. My reasoning is as follows. Granting a Voting Trust will put both CN and the STB in a box, CN would be crippled if the STB were to deny the acquisition after granting the Voting Trust because I don't believe that CN would be able to sell KCS for anywhere near what they paid for it. I would expect CP to come back with an offer closer to $20 billion USD knowing that CN has to sell. The STB would be constrained not wanting to cripple CN with serious debt that they would have a difficult time servicing, perhaps to the point of deferring maintenance on their own properties. If the Voting Trust is denied CN has to sweeten its offer by $1 billion USD, but I don't think this would sway the STB either way, CN willing did that to itself.
SD70Dude Did CP put their proposal to a shareholder vote before publicly announcing their merger agreement?
The STB did deny the CN's application for a voting trust as incomplete. The denial does allow CN to refile another application.
Jeff
jeffhergert The STB did deny the CN's application for a voting trust as incomplete. The denial does allow CN to refile another application. Jeff
I am aware of that, I am talking about the refiled application which is complete.
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