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  • CN (CNR) has filed a request with the Surface Transportation Board (STB) to establish a schedule to review its voting trust
  • CN’s filing also includes the merger agreement with KCS that was finalized on May 13, 2021
  • CN is confident that it will gain approval for the voting trust and ultimately close the combination with Kansas City Southern (KCS)
  • CN is preparing a motion for the STB to approve its proposed voting trust to be filed on or before Friday, May 21, 2021

CN (CNR) has filed a request with the Surface Transportation Board (STB) to establish a schedule to review its voting trust.

CN’s filing also includes the merger agreement with KCS that was finalized on May 13, 2021, when KCS deemed CN’s proposal superior and announced its intention to terminate the previously executed March 21, 2021 merger agreement with Canadian Pacific Railway Ltd. (CP).

CN is confident that it will gain approval for the voting trust and ultimately close the combination with KCS. CN looks forward to the STB promptly setting a timetable for reviewing the voting trust.

In its application to the STB, CN requested that the STB adopt a procedural schedule for a brief public comment period on CN’s voting trust agreement. CN’s proposed voting trust structure has been public since April 26, 2021, and has identical terms and uses the same trustee as CP’s recently approved voting trust. 

CN is preparing a motion for the STB to approve its proposed voting trust to be filed on or before Friday, May 21, 2021. In this filing, CN will show that the significant public benefits of the transaction can only be achieved through the use of a voting trust and that these benefits substantially outweigh any potential public interest harm.

CN will also demonstrate that its strong balance sheet, cash flows and credit rating profile provide certainty that CN has the financial integrity to satisfy the STB’s public interest analysis.

CN is the better bid, better partner, better railway and best solution for KCS. CN’s proposal provides superior and more certain value for KCS shareholders and represents a pro-competitive solution that offers unparalleled opportunities for customers, employees, shareholders, the environment and the North American economy.

CN will continue to engage productively and respectfully with the KCS Board to deliver a superior and pro-competitive transaction to CN and KCS’ respective stakeholders.

CN is a world-class transportation leader and trade enabler. CN safely transports more than 300 million tons of natural resources, manufactured products, and finished goods throughout North America every year.

As the only railroad connecting Canada’s Eastern and Western coasts with the U.S. South through a 19,500-mile rail network, CN and its affiliates have been contributing to community prosperity and sustainable trade since 1919. CN is committed to programs supporting social responsibility and environmental stewardship.

CN (CNR) is up 0.59 per cent, trading at C$131.75 per share at 2:15 pm ET.

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