In a broadly anticipated transfer, Kansas Metropolis Southern KSU pushed again the particular assembly of its shareholders by a fortnight. It was initially scheduled for Aug 19 and can now be held on Sep 3, 2021. On the assembly, shareholders of Kansas Metropolis Southern are scheduled to vote in favor or towards Canadian Nationwide Railway’s CNI $33.6-billion provide.
Kansas Metropolis Southern’s determination to postpone the assembly is the newest within the slew of updates pertaining to its takeover.
Let’s recap the collection of attention-grabbing occasions resulting in the assembly being rescheduled briefly.
The primary replace on this story that hitherto dominated the railroad house got here in March when one other railroad operator Canadian Pacific Railway Restricted CP inked a $29-billion deal to purchase the Kansas Metropolis, MO-based railroad operator. In April, Canadian Nationwide made a $33.6-billion provide to buy the identical. Whereas its provide was accepted by Kansas Metropolis Southern in Could, the proposal by Canadian Pacific was rejected.
Canadian Pacific returned with a revised provide price $31 billion earlier this month, which was additionally turned down. Whereas declining this enhanced provide, Kansas Metropolis Southern formally notified on Aug 12 that it continues to stick to its Could determination of accepting Canadian Nationwide’s bid, which incorporates instituting a voting belief.
The U.S. Floor Transportation Board (STB) is at present reviewing this proposal on the formation of a voting belief. The STB had earlier this month expressed its intent to take a name by Aug 31. Each Kansas Metropolis Southern and Canadian Nationwide count on a positive regulatory determination relating to the voting belief.
As Kansas Metropolis Southern’s shareholders have to correctly undergo the STB verdict earlier than voting, its administration on Aug 12 introduced that it’s going to reschedule the assembly if the STB didn’t pronounce its sentence by Aug 17. Its board members advocate its shareholders to vote in help of the approaching transaction by Canadian Nationwide.
Watch this house for additional updates on the topical concern within the railroad house.
Zacks Rank & Key Choose
Kansas Metropolis Southern at present carries a Zacks Rank #4 (Promote).
A greater-ranked inventory within the Zacks Transportation sector is SkyWest SKYW, at present sporting a Zacks Rank #1 (Robust Purchase). You may see the whole record of immediately’s Zacks #1Rank shares right here.
Shares of SkyWest have surged 31.9% over the previous 12 months.
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Canadian Nationwide Railway Firm (CNI): Free Inventory Evaluation Report
Kansas Metropolis Southern (KSU): Free Inventory Evaluation Report
Canadian Pacific Railway Restricted (CP): Free Inventory Evaluation Report
SkyWest, Inc. (SKYW): Free Inventory Evaluation Report
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