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The Surface Transportation Board (STB) yesterday announced a decision on a petition filed by Canadian Pacific, which asked the board to confirm that Kansas City Southern remains obligated to provide information to CP for purposes of preparing an application to acquire control of KCS.
In its decision, the STB declined to opine on whether the parties’ contractual obligations require the return of information previously provided and clarified that the board’s protective order does not provide a basis for the relief sought by CP. However, the board confirmed that CP can use discovery under the board’s regulations to seek relevant information from KCS, STB officials said in a press release.
CP filed its petition on May 27, shortly after KCS notified the board that it was formally terminating its merger agreement with CP in order to pursue a merger with CN. Essentially, CP asked that it could still access information from KCS that it needed for purposes of moving forward with a merger application, notwithstanding the termination.
KCS disputed any affirmative duty under the terminated merger agreement to furnish information to CP.
In response to the STB's decision, CP officials said in a press release they are “gratified” with the ruling.
"This decision validates CP's plan to submit its application for authority to control KCS in the CP-KCS docket, which will present the STB with the only viable Class I combination that is in the public interest. CP looks forward to obtaining the needed information from KCS and completing and filing its application," CP officials said.The STB's ruling can be read here.