Canadian Pacific To Seek Declaratory Order From STB On Proposed Merger With NS

(RTTNews) - Canadian Pacific (CP, CP.TO) said that it will seek a declaratory order from the U.S. Surface Transportation Board (STB) confirming the viability of the voting trust structure that CP has suggested as part of its proposed merger with Norfolk Southern Corp. (NSC).

CP urges with Norfolk Southern or NS, consistent with its duties to its shareholders, to assist constructively in this effort, but intends to proceed regardless of NS's cooperation.

While the declaratory order presents a hypothetical proposed trust - outside the established STB procedure for seeking formal trust approval - CP said it is hopeful that the STB will be able to offer clear guidance that will satisfy shareholders' concerns before their voices are heard on CP's pending resolution.

Earlier this month, CP submitted a resolution to NS shareholders to ask their board of directors to meet with CP to discuss the clear benefits of a business combination that would create a true end-to-end transcontinental railroad that would enhance competition, benefit the public and drive economic growth.

CP strongly believes that a combined railroad would offer unparalleled customer service and competitive rates that will support the success of the shippers and industries it serves, and satisfy the STB and Canadian regulators.