Canadian National Railway Co T.CNR

Just wondering

[Justhalffull]

When KSU backed out of the CP deal in favor of the CN offEr, they had to pay CP the break fee of $700,000,000.   ;As part of the CN deal with KSU, CN agreed to pay the break fee to CP.   If the CN deal now goes away, and the CP deal goes through, would Cn get their $700,000,000 refunded?

[autofocus111]

Yes. See p.133 of the merger agreement. >>>As further described in the section below entitled “The Merger Agreement—Termination or Abandonment of the Merger Agreement,” if CN terminates the merger agreement due to the KCS board making a change of recommendation, or if KCS terminates the merger agreement to enter into a definitive agreement providing for a superior proposal, KCS will be

[ailyn63]

i would like to think so. although i don't see the cn deal falling through, do you?

[Justhalffull]

Yes, I think the CN deal is tout fini.  Ruest is likely done as CEO, and Jim Vena will be back.  Lottery win for Vena I suppose.  TCI would likely up the heat considerably if CN tried to make another higher offer for KCS.  I agree with them that some of these directors have to go.

[autofocus111]

Justhalf TCI is not a neutral player. They have shares in both CNR and CP so their ulterior motives are not evident. CNR executives and BOD are doing exaclty what they should be doing ie. preventing CP from expanding (and expanding themselves instead), or at least making CP pay more for the opportunity. I don't hear other CNR shareholders complaining about their strategy. I think TCI will fail

[autofocus111]

Looks like the Caisse agrees. >>>The head of Quebec’s largest fund manager is backing the board and management of Canadian National Railway Co. in their fight against an unhappy shareholder, saying they were right to attempt a takeover of Kansas City Southern even though the bid failed. Charles Emond, the chief executive officer of the Caisse de Depot et Placement du Quebec, said