The board said the proposed voting trust is not consistent with the public interest standard under its merger regulations.
Earlier this month, Kansas City Southern said it would delay a shareholder vote on its deal to be bought by CN Rail that is set for Aug. 19 if a U.S. regulator didn’t share its decision on a key voting trust by Aug. 17.
The trust would’ve allowed KCS to remain independent while a full review of the transaction is conducted, but shareholders would get paid without having to wait for a final decision on the deal.
The U.S. Surface Transportation Board said it would make a decision on whether to allow CN to use the trust by the end of August.
More to come