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Canadian National Railway Co T.CNR

Alternate Symbol(s):  CNI

Canadian National Railway Company is a transportation and logistics company. The Company's services include rail, intermodal, trucking, and supply chain services. The Company’s rail services offer equipment, customs brokerage services, transloading and distribution, private car storage and others. Its intermodal container services help shippers expand their door-to-door market reach with about 23 strategically placed intermodal terminals. Its intermodal services include temperature-controlled cargo, port partnerships, logistics park, moving grain in containers, custom brokerage, transloading and distribution, and others. Its trucking services include door-to-door service, import and export dray, interline services, and specialized services. Its supply chain services offer comprehensive services across a range of industries and product types. It transports more than 300 million tons of natural resources, manufactured products, and finished goods throughout North America every year.


TSX:CNR - Post by User

Comment by Justhalffullon May 25, 2021 6:58pm
155 Views
Post# 33264974

RE:RE:RE:Is this a good entry point

RE:RE:RE:Is this a good entry pointIf you think that, then you do not understand the details of the offer.  Why do you think TCI  management, a 3% holder of CN advises to walk away.  They feel CN is making a $2 billion dollar bet (700,000,000 to CP in break fee and $1,000,000,000 break fee to KCS if the CN deal fails) that the deal goes through.  But if it doesn't, they will be stuck with 90 million plus KCS shares for which they paid about $325 per share to purchase.  Now they will have to sell them at a discount.  You just don't walk on to the floor of the stock market and sell 90 plus million shares at the market.  They will be steeply discounted.  So much so that TCI feels they could take a hit of as much as $18 billion.  So about $20 billion in total.  That works out to a full 5 years of CN earnings not counting interest costs on the borrowing they will have to hold to settle it all.   That is the possibility that is out there.   I personally don't feel the STB will block the deal, but it is a possibility that most sensible investors take into account.

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