We follow this story because it's an important part of Kansas City history and most of our local media seem to forget that this company was INTEGRAL in building up this cowtown as the most important destination in the Midwest.
And so, the conclusion of the stock deal at least merits mention . . .
Kansas City Southern shareholders received $90 in cash and 2.884 Canadian Pacific shares for each share they held. As a result, Kansas City Southern no longer trades on the New York Stock Exchange. But the railroad itself will not come under Canadian Pacific control for at least a year. Rather, the operations will roll into a special voting trust that's required to be arm's length from Canadian Pacific while regulators decide if a merger should be allowed.
The convoluted trust structure is awkward, at best, and could lead to some real issues for Canadian Pacific through the end of 2022.
Read more via www.TonysKansasCity.com news link . . .
The yearlong saga by (( Kansas City Southern NYSE:KSU) to find a buyer came to an end on Dec. 14, when Canadian Pacific Railway NYSE:CP) completed its deal to acquire Kansas City stock for $31 billion. But what happens next for the railroads is far from clear, and investors need to remain on alert as the next year plays out.