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Canadian Pacific Railway wants STB to approve voting trust for Norfolk Southern

Staff writer |
Canadian Pacific Railway (CP) will seek an approval from the U.S. Surface Transportation Board (STB) of the viability of a deal structure it intends to use in its takeover of Norfolk Southern.

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The deal structure, voting trust, would allow Canadian Pacific and Norfolk Southern to remain independent until their merger gets regulatory approval, but allows the U.S. railroad's shareholders to get paid before the deal closes.

The U.S. Surface Transportation Board (STB) would need to approve the voting trust before beginning the deal review process. Norfolk Southern said it does not believe the voting trust will be approved.

The Canadian company's $28 billion offer to buy Norfolk Southern, first disclosed in mid-November, is facing opposition from a number of industry groups, rail customers and a couple of the unions representing workers at Norfolk Southern.

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