CP, KCS Counter DOJ 'Concerns' - Railway Age : vimarsana.com

CP, KCS Counter DOJ 'Concerns' - Railway Age


CP, KCS Counter DOJ ‘Concerns’
CP, KCS Counter DOJ ‘Concerns’
Written by
Marybeth Luczak, Executive Editor
Merger applicants Canadian Pacific (CP) and Kansas City Southern (KCS) are refuting the U.S. Department of Justice’s (DOJ) recent filing with the Surface Transportation Board (STB) questioning use of a voting trust and granting KCS an exemption under merger rules established about 20 years ago.
Among its April 12 filing comments, DOJ (download filing below) wrote: “At this time, the Department does not yet have a view on the merits of the proposed transaction, but the Department submits this comment to urge the Board [STB] to ensure that the parties do not take any action that would undermine the Board’s ability to conduct a meaningful review. Most importantly, as the Department has previously expressed, the Board should rarely, if ever, permit the parties to a proposed merger to use a so-called ‘voting trust’ to effectively consummate an acquisition before the Board has had an opportunity to consider whether the combination would harm competition.”

Related Keywords

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