CP to Buy KCS

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MrAnderson
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Re: CP to Buy KCS

Unread post by MrAnderson »

KCS accepted Canadian National’s $33.6 billion bid

https://www.trains.com/trn/news-reviews ... ger-offer/

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Talk
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Re: CP to Buy KCS

Unread post by Talk »

MrAnderson wrote:
Thu May 13, 2021 7:42 pm
KCS accepted Canadian National’s $33.6 billion bid

https://www.trains.com/trn/news-reviews ... ger-offer/
Grumble Grumble

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Re: CP to Buy KCS

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So that probably means I could start seeing KCS colors around my house in the next 5 years if this goes through. That's awesome, it's one of my top 5 all time favorite liveries.

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trainjunkie47
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Re: CP to Buy KCS

Unread post by trainjunkie47 »

So when is BNSF going to take over both CP and FXE?

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redcrumbox
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Re: CP to Buy KCS

Unread post by redcrumbox »

CN or CP will again be offering passenger service if either deal is approved.
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kd_1014
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Re: CP to Buy KCS

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redcrumbox wrote:
Tue May 18, 2021 11:15 pm
CN or CP will again be offering passenger service if either deal is approved.
Huh?

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AARR
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Re: CP to Buy KCS

Unread post by AARR »

Redcrumbbox is joking.
kd_1014 wrote:
Wed May 19, 2021 10:41 am
redcrumbox wrote:
Tue May 18, 2021 11:15 pm
CN or CP will again be offering passenger service if either deal is approved.
Huh?
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Re: CP to Buy KCS

Unread post by Robertrains »

Well look at this!!!! KCS wants the "Bigger Ca$h" of CN's offer! :shock: WOW!!!! :shock: THE BIGGEST CN!!!! OK, it still has to be approved by the STB! Will CN really keep it a separate railroad? Or will there be "Southern Belle" locos repainted into "CN" paint and "KCS" sub-lettering! Gosh I hope not! :evil: We shall see!!!! :wink:
CNBC Article: https://www.cnbc.com/2021/05/21/kansas- ... ZnFCGJvCIg :?
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Re: CP to Buy KCS

Unread post by trainjunkie47 »

Robertrains wrote:
Fri May 21, 2021 7:44 pm
it still has to be approved by the STB! Will CN really keep it a separate railroad?
CN will have to decide which line, theirs, or the KCS line, that they plan on selling off, between Baton Rouge and New Orleans. There should be little trouble spinning either line off to another railroad. But I can't see CN keeping KCS a separate entity, except on paper. They won't rush the KCS power into the paint booth any faster than they have with the IC and GTW power, but it will not be kept its own unit.

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Re: CP to Buy KCS

Unread post by dave989 »

Hold off on that sale. Looks like the Feds are sticking their noses in this. It ain't over till the fat feds say so!?!?

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Re: CP to Buy KCS

Unread post by David Lang »

CP plans new, higher bid for KCS. See link below.

https://www.foxbusiness.com/markets/can ... y-southern

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redcrumbox
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Re: CP to Buy KCS

Unread post by redcrumbox »

AARR wrote:
Wed May 19, 2021 1:14 pm
Redcrumbbox is joking.
kd_1014 wrote:
Wed May 19, 2021 10:41 am
redcrumbox wrote:
Tue May 18, 2021 11:15 pm
CN or CP will again be offering passenger service if either deal is approved.
Huh?
The Panama Canal Railway currently provides both freight and passenger service.

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Re: CP to Buy KCS

Unread post by David Lang »

https://www.foxbusiness.com/markets/kan ... an-pacific

Why would CP offer less for KCS than CN did? I mean, correct me if I'm wrong, but if two entities are trying to acquire the same company, wouldn't you want to OUTBID your opponent?

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Re: CP to Buy KCS

Unread post by cfriedri »

David Lang wrote:
Fri Aug 13, 2021 11:29 am
https://www.foxbusiness.com/markets/kan ... an-pacific

Why would CP offer less for KCS than CN did? I mean, correct me if I'm wrong, but if two entities are trying to acquire the same company, wouldn't you want to OUTBID your opponent?
CP still thinks their merger with KCS has less regulatory risk associated with it as opposed to CN. Why pay more when the deal with CN has to the potential to fail the STB's evaluation?
Connor

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Re: CP to Buy KCS

Unread post by ns8401 »

cfriedri wrote:
Sun Aug 15, 2021 4:56 am
David Lang wrote:
Fri Aug 13, 2021 11:29 am
https://www.foxbusiness.com/markets/kan ... an-pacific

Why would CP offer less for KCS than CN did? I mean, correct me if I'm wrong, but if two entities are trying to acquire the same company, wouldn't you want to OUTBID your opponent?
CP still thinks their merger with KCS has less regulatory risk associated with it as opposed to CN. Why pay more when the deal with CN has to the potential to fail the STB's evaluation?
All this being equal they are probably right.
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Re: CP to Buy KCS

Unread post by dave989 »

STB has told CN foggettaboutit!! I told you the feds would stick their noses in this and have rejected Canadian Nationals bid to get KCS. This will remain messy for a while.

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Doktor No
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Re: CP to Buy KCS

Unread post by Doktor No »

Curb Your Enthusiasm.

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Re: CP to Buy KCS

Unread post by MQT1223 »

Not surprised that CN was rejected. Shareholders getting greedy once someone opens their checkbook. Obviously CP is the better avenue for KCS. Less regulatory hurdles and a better system that even united would see little to no change in terms of mileage.

It still blows me away that even combined CP and KCS would still be towards the bottom in terms of size, just goes to show you how big some of these companies are.
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Re: CP to Buy KCS

Unread post by DaveO »

Don't forget that as a publicly owned company traded on the stock markets, the Board of Directors of KCS has a fiduciary duty to accept the best deal for the shareholders.

If CP wants to get a quick approval, then they better get their offer up where CN had theirs.
That would make it easier for the BOD to endorse it.

As a side note, that fiduciary duty also applies to pension boards. That results sometimes in employee pension boards voting for a takeover of their company that results in many, sometimes all, employees losing their jobs.

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Doktor No
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Re: CP to Buy KCS

Unread post by Doktor No »

The railroad employee pension boards are an office of the Federal Government. They have no say in the manner, they just take care of the employees.
Curb Your Enthusiasm.

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