CP Applauds KCS Boards Action to Adjourn Stockholder Meeting so Stockholders
Can Fully Consider an STB Decision on CN Voting Trust
CALGARY Aug. 19, 2021 Canadian Pacific Railway Limited (TSX: CP, NYSE: CP) (CP) today issued the following statement on the Kansas
City Southern (KCS) Board of Directors action today to postpone its Aug. 19 special meeting of stockholders to Sept. 3:
By rightly
postponing Thursdays meeting, the KCS Board of Directors appropriately will allow stockholders to have access to all the information needed before voting on the CN-KCS merger proposal, including the
critical decision by the Surface Transportation Board (STB) on the Canadian National (CN) proposed voting trust. Delaying the stockholder vote also means KCS stockholders wont become locked into a CN-KCS combination and then unable to consider other, better options like CPs Aug. 10 proposal, which remains outstanding.
The STB has said it will issue its voting trust decision by Aug. 31. CP has urged the STB not to approve CNs proposed use of a voting trust because CP
believes that the trust would be anti-competitive and not in the public interest.
CP-KCS is the only true end-to-end Class 1 combination that serves the public interest preserving and enhancing competition for customers and enabling a stronger North American rail
network connecting Canada, the United States and Mexico. CP-KCS is a superior combination that has a path to approval and deal certainty for the KCS shareholders.
CP also believes that once the STB rules on the CN voting trust proposal, the Aug. 10 CP offer ought to be deemed superior as the CP-KCS combination has regulatory certainty as a result of the STBs approval for CPs use of a voting trust.
CP-KCS: The only viable Class 1 combination
A CP-KCS combination would create more competition not less in the freight rail industry and would be
better for Amtrak. It brings more competition among railways and protects obligations to passenger service.
For information on the benefits of a CP-KCS combination, visit FutureForFreight.com.
FORWARD LOOKING STATEMENTS AND INFORMATION
This news release includes certain forward-looking statements and forward looking information (collectively, FLI). FLI is typically identified by words such
as anticipate, expect, project, estimate, forecast, plan, intend, target, believe, likely and similar words suggesting
future outcomes or statements regarding an outlook. All statements other than statements of historical fact may be FLI.
Although we believe that the FLI
is reasonable based on the information available today and processes used to prepare it, such statements are not guarantees of future performance and you are cautioned against placing undue reliance on FLI. By its nature, FLI involves a variety
of assumptions, which are based upon factors that may be difficult to predict and
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