Kansas City Southern decided Aug. 17 to delay a 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 Aug. 19 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.
