Canadian Pacific sets shareholder meeting for KCS merger vote

Canadian Pacific has scheduled a Dec. 8 special meeting for its shareholders to vote on its proposed acquisition of Kansas City Southern.

The meeting will be held virtually and is open to all shareholders who held CP common stock as of the close of business Nov. 1. As announced on Sept. 15, CP has agreed to acquire KCS in a cash and stock transaction worth $31 billion, including the assumption of $3.8 billion in outstanding KCS debt. KCS has been valued at $300 per share.

The Surface Transportation Board on Sept. 30 approved the use of a voting trust for the transaction. Shareholders from both companies have to approve the combination.

At the closing, KCS shareholders will receive 2.884 CP shares and $90 in cash for each KCS common share held, and KCS’s voting shares will be placed into trust. The companies expect the transaction to close by first-quarter 2022, CP officials said in a press release.