Canadian Pacific shareholders vote for KCS merger plan

Canadian Pacific shareholders yesterday voted overwhelmingly in favor of the issuance of CP common shares to Kansas City Southern common stockholders in connection with the proposed CP-KCS combination.

The CP shareholders voted on two items during yesterday's special meeting. The first vote was to approve the issuance of up to 277,960,197 CP common shares as the share consideration under the terms of the merger agreement. The second vote was to approve the Class I’s name change to Canadian Pacific Kansas City Ltd. The name change depends on the proposed merger’s approval by the U.S. Surface Transportation Board (STB).

The vote results were 99.91% in favor of the share issuance resolution and 99.83% in favor of the name change resolution.

"The overwhelming support our shareholders have given to the transaction is critical to making this combination a reality," said CP President and CEO Keith Creel in a press release. "In the coming days, we will be working to complete the steps required to close into the voting trust, and in the months ahead we look forward to participating in the STB's comprehensive regulatory review."

As announced Sept. 15, CP agreed to acquire KCS in a stock and cash transaction valued at $31 billion, which includes $3.8 billion of outstanding KCS debt. The transaction values KCS at $300 per share.

KCS stockholders are slated to vote on the merger agreement tomorrow.