Kansas City Southern delays vote on $33.6B rail takeover bid

Kansas City Southern will delay this week’s planned shareholder vote on Canadian National’s $33.6 billion offer to buy the railroad because regulators haven’t ruled on a key part of the acquisition plan

OMAHA, Neb. -- Kansas City Southern decided Tuesday to will delay this week’s planned shareholder vote on Canadian National’s $33.6 billion offer to buy the railroad because regulators haven’t yet ruled on a key part of the acquisition plan. The vote scheduled for Thursday was put on hold while investors wait to hear whether the U.S. Surface Transportation Board will approve Canadian National’s plan to use a voting trust as part of the acquisition. The plan calls for the trust to acquire Kansas City Southern and hold the railroad during the STB’s extended review of the overall deal. Without that approval, the deal may fall apart. The STB said last week that it expects to issue its decision on CN's proposed voting trust by Aug. 31. “If we do not have a decision from the STB, we think that is very important information for shareholders,” Kansas City Southern CEO Pat Ottensmeyer said. “We’re not going to ask shareholders to make a commitment without having that information.”