The Canadian Pacific (CP) is not exploring, for the moment, the possibility of improving its offer for Kansas City Southern, in spite of the pressure of the shareholders. “There is no need at this time to consider this because we have an agreement with Kansas City Southern [KCS] ”Said Isabelle Courville, Chair of the CP Board of Directors, in an exclusive interview with Economy zone.
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There is the Canadian National [CN] who made an unsolicited offer to the board of directors of KCS, but that offer is under evaluation. And this assessment is about the regulatory process
, explained Ms. Courville on the airwaves of ICI RDI, Friday evening.
In the meantime, CP considers its offer to be appropriate.A., is that we have no intention of improving our offer, because it is the only one that is on the table. “,” Text “:” For the moment, the answer is clear, added the president. turnover is that we have no intention of improving our offer, because it is the only one on the table. “}}” lang = “fr”>For the moment, the clear answer, added the president of the C.A., is that we have no intention of improving our offer, because it is the only one that is on the table.
Canadian National’s offer to buy Kansas City Southern is US $ 34.7 billion. This corresponds to US $ 325 per share. Canadian Pacific’s proposal is $ 25.2 billion, or US $ 275 per share. However, KCS stock on the New York Stock Exchange closed on Friday afternoon at US $ 305.22 per share, suggesting that shareholders of the US company expect CP enhances its offer.
Our project is for all KCS stakeholders. For the shareholders, you are absolutely right, but also for the customers, also for the regulator, because he must approve the transaction.
For the president of the board of directors of the PC, bidder against ourselves, as they say, the other offer is in regulatory limbo at the moment “,” text “:” it’s hard to bid against ourselves, as they say, the other offer is in regulatory limbo for the moment “}}” lang = “fr”>it is difficult to bidder against ourselves, as they say; the other offer is in regulatory limbo at the moment.
The other offer is from CN. In a press release, Canadian National says it can get the same regulatory approvals as CP, which Isabelle Courville rejects. The only interconnection point between the Canadian Pacific Railway and KCS is in Kansas City in a marshalling yard that is jointly managed. There is only one point of contact.
Canadian Pacific says its proposal will increase competition and provide new opportunities for Canadian businesses to Mexico.: in each case, there are examples where the senders will have new offers that they did not have before. So that’s increasing competition “,” text “:” This is a new offer that was non-existent before the merger of the two organizations. I can talk to you about the grain sector, all natural resources, the petroleum sector: in each case, there are examples where shippers will have new offers that they did not have before. So that’s what increasing the competition “}}” lang = “fr”>This is a new offer which was non-existent before the merger of the two organizations. I can talk to you about the grain sector, natural resources, the petroleum sector: in each case, there are examples where shippers will have new offers that they did not have before. So that’s it, increase the competition, concludes Ms. Courville.
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