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CN Sends Letter to Board of Kansas City Southern Regarding Its Superior Proposal
Canadian National RailwayApril 22, 2021 GMT
Reiterates that voting trust structure is identical to that of KCS’ existing transaction
Confirms confidence in ability to gain regulatory approval and deliver the benefits of the combination to both companies’ stakeholders
MONTREAL, April 22, 2021 (GLOBE NEWSWIRE) CN (TSX: CNR, NYSE: CNI) today announced that it has sent a letter to the board of directors of Kansas City Southern (NYSE: KSU) (“KCS”) regarding its superior proposal to acquire KCS in a cash-and-stock transaction valued at $33.7 billion, or $325 per share1.
CN President and CEO Jean-Jacques Ruest
Railway Age, the first media outlet to publish Creel’s letter, presents it in full:
Dear Pat and the Other Members of the Board of Directors:
On Tuesday, I delivered on behalf of Canadian National Railway Company (CN) a compelling proposal for CN to combine with Kansas City Southern (KCS), in which KCS shareholders will receive cash and CN stock valued at $325 per KCS common share, based on trading prices as of April 19, 2021. This proposal represents [more than] $50 per common share of incremental value than that being offered as part of the proposed transaction with Canadian Pacific Railway Limited (CP).
Dear Ms. Brown:
I am writing on behalf of the Canadian Pacific Applicants.
1 As the Board is no doubt aware, Canadian National (CN) has made an unsolicited offer to acquire Kansas City Southern (KCS), and has asked the Board of Directors of Kansas City Southern to consider that offer. CN Press Release (Apr. 20, 2021). CN has informed KCS that its proposal would require the same regulatory approvals as those required under the agreement with CP and that CN would seek to obtain[] such regulatory approvals on the same terms as in the merger agreement with CP, including through the use of the same voting trust arrangement.
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