The Surface Transportation Board has rejected Canadian National’s proposal to set up a voting trust that would acquire the Kansas City Southern and operate the railroad during the regulatory review. CN will now resubmit its merger agreement to the STB. Rival railroad company, Canadian Pacific, said the STB ruling boosted its confidence in its bid to buy KCS. CN’s offer of $33.6 billion tops the $25 billion CP deal, but the regulators will have the final say.
