Canadian Pacific Says SMART-TD Union Calls to Reject CN Voting Trust
15 Juni 2021 - 3:30PM
Dow Jones News
By Adriano Marchese
Canadian Pacific Railway Ltd. said Tuesday that North America's
largest railroad operating union has submitted a letter urging the
Surface Transportation Board to reject Canadian National Railway
Co.'s proposed use of a voting trust.
The Canadian transcontinental freight railway owner and operator
said SMART-Transportation Division opposes CN's voting trust as
part of its proposal to combine with Kansas City Southern.
In the letter, SMART-TD President Jeremy Ferguson said that the
approval of the CN voting trust by the Surface Transportation Board
would prove risky for the railway industry, creating potential
negative repercussions to its members.
"Approval of the CN voting trust proposal would harm employees
of both KCS and CN due to the amount of debt CN will carry and the
real possibility that the CN transaction would fail the regulatory
test in the end," Mr. Ferguson said.
In contrast, the SMART-TD letter supports a rival proposal by
Canadian Pacific to combine with Kansas City Southern, adding that
the union anticipates growth in both rail businesses and jobs for
SMART-TD members.
"CP maintains that a CP-KCS combination is the only viable class
1 merger that serves the best interests of customers and
stakeholders, but also the continent's rail network to enable a new
corridor of investment and capacity for the North American economy
to grow," CP said.
Write to Adriano Marchese at adriano.marchese@wsj.com
(END) Dow Jones Newswires
June 15, 2021 09:19 ET (13:19 GMT)
Copyright (c) 2021 Dow Jones & Company, Inc.
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