San Diego, CA -- (SBWire) -- 10/01/2021 --An investigation was announced concerning whether the takeover of Kansas City Southern is unfair to NYSE: KSU stockholders.
Investors who purchased shares of Kansas City Southern (NYSE: KSU) and currently hold any of those NYSE: KSU shares have certain options and should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.
The investigation by a law firm concerns whether certain officers and directors of Kansas City Southern breached their fiduciary duties owed to NYSE: KSU investors in connection with the proposed acquisition.
On September 15, 2021, Kansas City Southern (NYSE: KSU) announced that the Company's Board of Directors, in consultation with its financial and legal advisors, has unanimously determined that the acquisition proposal Kansas City Southern received from Canadian Pacific Railway Limited (TSX: CP, NYSE: CP) ("CP") on September 12, 2021 continues to constitute a "Company Superior Proposal" under Kansas City Southern's pending merger agreement with Canadian National Railway Company (TSX: CNR, NYSE: CNI) ("CN").
Following the Kansas City Southern Board's determination and the execution of the waiver letter, Kansas City Southern terminated the CN merger agreement and is entering into a merger agreement with CP. Under the terms of the CP merger agreement, upon closing of CP's voting trust, each share of Kansas City Southern common stock will be exchanged for $90 in cash and 2.884 shares of CP common stock. In addition, holders of Kansas City Southern preferred stock will receive $37.50 in cash for each share of Kansas City Southern preferred stock held.
In connection with the termination of the CN merger agreement, Kansas City Southern is paying CN a breakup fee of $700 million and will also pay CN an additional $700 million in return of the $700 million previously paid by CN to KCS to reimburse the termination fee paid to CP in May. Both of these payments will be reimbursed to Kansas City Southern by CP.
Based on a closing price of $68.54 per NYSE: CP share on September 10, 2021, investors in in Kansas City Southern (NYSE: KSU) shares will receive a value of approximately of $287.67 per share.
However, given that at least one analyst has set the high target price for NYSE: KSU at $310.00 per share, the
investigation concerns whether the offer is unfair to NYSE: KSU stockholders. More specifically, the investigation concerns whether the Kansas City Southern Board of Directors undertook an adequate sales process, adequately shopped the company before entering into the transaction, maximized shareholder value by negotiating the best price, and acted in the shareholders' best interests in connection with the proposed sale.
Those who are current investors in Kansas City Southern (NYSE: KSU) shares have certain options and should contact the Shareholders Foundation.
Contact:
Shareholders Foundation, Inc.
Michael Daniels
3111 Camino Del Rio North - Suite 423
92108 San Diego
Phone: +1-(858)-779-1554
Fax: +1-(858)-605-5739
mail@shareholdersfoundation.com
About Shareholders Foundation, Inc.
The Shareholders Foundation, Inc. is a professional portfolio monitoring and settlement claim filing service, , which does research related to shareholder issues and informs investors of securities class actions, settlements, judgments, and other legal related news to the stock/financial market. Shareholders Foundation, Inc. is in contact with a large number of shareholders and offers help, support, and assistance for every shareholder. The Shareholders Foundation, Inc. is not a law firm. Referenced cases, investigation, and/or settlements are not filed/reached and/or related to Shareholders Foundation. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.
NYSE:KSU Shareholder Notice: Investigation over Possible Wrongdoing in Acquisition of Kansas City Southern
An investigation on behalf of investors of Kansas City Southern (NYSE:KSU) in connection with the proposed takeover was announced.