Pensyfan19 wrote: ↑Fri Aug 13, 2021 6:26 pm
Isn't there supposed to be a final decision of who the new owner of KCS will be by August 19th?
There is no decision between CN and CP pending. KCS can only be engaged to one partner at a time. They broke their engagement with CP and paid a $700 million penalty (covered by CN). Now KCS is engaged to CN and are subject to a similar $700 million penalty if they break that deal (plus repaying the $700 million CN paid CP). The vote scheduled for next week (and likely to be postponed) is a simple question for KCS shareholders to approve or reject the deal with CN. There is no choice on the ballot for CP.
Likewise the STB is absolutely NOT making the choice of who buys KCS. They are tasked with either allowing or disallowing the transfer of ownership and separately the transfer of control of KCS. They have approved the transfer of ownership of KCS to CP (the CP voting trust, with modifications). They have not yet approved the transfer of ownership of KCS to CN.
Transfer of ownership (and separately transfer of control) is permission. The approval of the CP voting trust says that the companies MAY use a voting trust to transfer ownership of KCS to CP. That approval does not require the ownership to be transferred. The STB can approve both voting trusts. It is not an either/or choice for the STB.
Next year's decision will be transfer of control. The STB will decide separately if control of KCS can be transferred to CN or if control of KCS can be transferred to CP. Each question is entirely separate and the STB could say yes to both. Again, it is a question of permission not a binding decision that would force control to be transferred. But given that KCS will already be owned by CN or CP through a voting trust by the time that control decision is made it is fairly obvious that the owner will use their permission (if granted) to take control of their company.