Connect with us

Business

CP Rail makes sweetened bid for Kansas City Southern valued at US$31B including debt – CTV Toronto

Published

 on


CALGARY —
Canadian Pacific Railway Ltd. has sweetened its takeover offer for Kansas City Southern with a US$31 billion bid for the U.S. railway.

The new bid comes ahead of a vote on Aug. 19 by Kansas City Southern shareholders on a rival offer by Canadian National Railway Co. valued at US$33.6 billion. Both deals include the assumption of about US$3.8 billion in Kansas City Southern’s debt.

However, CP Rail said it believes its offer is more likely to be approved by U.S. regulators.

CP’s offer “represents improved terms to those agreed to in the CP-KCS merger agreement entered into on March 21, 2021 that are substantially similar to those in the CN merger agreement, but offers significantly higher regulatory certainty,” CP Rail CEO Keith Creel wrote in a letter to the KCS board.

CP has argued that CN has too much overlap on routes with KCS so a tie-up between the two would reduce competition, making regulator approval unlikely. The CP bid, Creel noted, will also be evaluated under pre-2001 merger rules while the CN bid is being judged by more stringent rules passed that year.

A recent executive order by U.S. President Joe Biden promoting competition also makes the CN bid less like to be approved, Creel said.

CN maintains that it could increase competition by taking over KCS, and has committed to selling a roughly 113-kilometre stretch of rail where the two companies’ networks run parallel.

The company said in a statement Tuesday that its offer remains the better one.

“CN and KCS’ agreed transaction remains superior and the best option for both companies’ stakeholders to deliver on a combination that will enhance competition and provide new servicing options for customers.”

On Friday, proxy advisory firm Institutional Shareholder Services recommended KCS shareholders vote for CN’s offer, noting that “the premium, valuation, and strategic rationale for the transaction are compelling.”

The proxy firm also noted that CP hadn’t presented a worthy alternative.

“While CP is soliciting votes against the transaction, it has not provided KSU shareholders with any actionable alternative, let alone one that bridges the divide between its initial offer and (CN’s) offer.”

Desjardins analyst Benoit Poirier said in a note that he believes this comment may have encouraged CP to make its new offer, which remains manageable for the company.

“Overall, our preliminary analysis gives us confidence that raising its offer would be doable for CP without jeopardizing its financial position,” Poirier wrote.

“This would also solidify CP’s proposition to KCS’s shareholders in a hostile environment for large-scale M&A in the industry following president Biden’s recent executive order on competition.”

Creel said in his letter that CP had held off on a revised bid because the company did not want to engage in a bidding war, but that the approaching KCS shareholder vote prompted the higher offer.

“We believe that now is the right time for us to re-engage with KCS, as the regulatory uncertainty of the proposed CN merger has placed KCS stockholders in the unfortunate position of having to vote on the proposed CN merger and, as a consequence of approving such proposal, eliminate KCS’s ability to consider superior offers.”

CN is awaiting a decision by the U.S. Surface Transportation Board on the railway’s plan to set up a voting trust that would acquire KCS and hold the company during the regulator’s potentially lengthy review of the overall deal.

The STB has already approved CP Rail’s use of a voting trust.

CP Rail had signed a deal in March to buy KCS for about US$275 per share, but CN topped that offer and secured support from the KCS board for its proposal in May.

Under CP Rail’s new offer, KCS shareholders would receive 2.884 CP Rail shares and US$90 in cash for each common share held, representing a value of about US$300 per share.

The CN proposal would see KCS shareholders receive US$200 in cash and 1.129 CN shares for each share in an offer valued at about US$325 per share.

This report by The Canadian Press was first published on Aug. 10, 2021

Adblock test (Why?)



Source link

Continue Reading

Business

Will China rescue the troubled property group Evergrande? | Inside Story – Al Jazeera English

Published

 on


Adblock test (Why?)



Source link

Continue Reading

Business

Why some Canadians are ready to travel; landlord boots tenant over tattoos: CBC's Marketplace cheat sheet – CBC.ca

Published

 on


Miss something this week? Don’t panic. CBC’s Marketplace rounds up the consumer and health news you need.

Want this in your inbox? Get the Marketplace newsletter every Friday.

Ottawa still wants us to stay home. But many travellers are heading to warmer pastures anyway

For many Canadians accustomed to a life of travel, the last year and half has only made their feelings of wanderlust grow stronger.

While the delta variant has complicated plans for a post-pandemic future where it’s safe to travel without reservations, many people are still planning to head south in the coming months.

Air Canada, Air Transat and Sunwing all say the upcoming fall and winter looks promising for travel to sun destinations.

“When looking to the sun market, we are very optimistic about our recovery,” Air Canada spokesperson Peter Fitzpatrick told CBC News in a recent email. He noted the airline is currently “observing demand growth that is above 2019 levels.”

Despite this increased demand, the federal government is still feeling uneasy about people travelling internationally.

In an email to CBC News, Global Affairs Canada said its still advising against non-essential travel outside of Canada and also pointed to practical concerns for those who do choose to go abroad.

“Additional travel restrictions can be imposed suddenly. Airlines can suspend or reduce flights without notice. Travel plans may be severely disrupted, making it difficult to return home.” Read more

A row of beach chairs in Varadero, Cuba, is empty of sun-seekers in March 2021. Cuba is relaxing restrictions for incoming Canadian tourists starting in mid-November. (Ramon Espinosa/The Associated Press)

Can a landlord cancel a lease because of tattoos? It happened to this student

A first-year Western University student who arrived in London, Ont., from Saskatchewan says she had a rental agreement cancelled at the last minute by a landlord who said she didn’t like her tattoos. 

Kadince Ball, 18, started school at Western earlier this month and secured an apartment ahead of her move. She’d already signed a lease and paid her damage deposit, but shortly after she met her landlord Esther Lee in person, Lee told her that she couldn’t move in.

“A lease was signed and because I look a certain way, I was denied tenancy,” said Ball. “None of my tattoos are offensive. They are works of art. They are somebody’s works of art on my body.” 

Lee told CBC News she moved to cancel the lease because she became “scared” after seeing Ball’s tattoos. The day the two first met in person, it was hot and Ball was wearing a tank top that showed her tattoos, which include a snake wrapped around a flower on her forearm, a cherub on one shoulder and a flower on the other shoulder 

“It covered almost 70 per cent of her arm,” said Lee. “That’s why I don’t want to rent it to her because it’s scary, so scary.”

Ball eventually found another apartment. She’s more concerned with her studies than pursuing legal action. But a lawyer at the Community Legal Services Clinic at Western says if she chose to bring the incident to small claims court, she likely would have a case. Read more

Kadince Ball signed a lease for an apartment in London, Ont., before arriving from Saskatchewan for her first year at Western University. When she met the landlord in person, the landlord said she wouldn’t rent to her. She later told CBC News it was because of Ball’s tattoos. (Andrew Lupton/CBC)

How much air pollution is too much? The answer is lower than we once thought

The World Health Organization said earlier this week that the harmful health effects of air pollution kick in at lower levels than it previously thought.

As a result, the WHO is setting a higher bar for policymakers and the public in its first update to its air quality guidelines in 15 years. 

Exposure to air pollution is estimated to cause seven million premature deaths and affect the health of millions more people each year, and air pollution “is now recognized as the single-biggest environmental threat to human health,” said Dr. Dorota Jarosinska, WHO Europe program manager for living and working environments.

Air pollution is now comparable to other global health risks such as unhealthy diets and tobacco smoking, WHO said. Read more

Vehicles drive on a highway as smog envelops the area of Lahore, Pakistan, on Nov. 11, 2020. The World Health Organization said this week that the negative health impacts of poor air quality kick in at lower levels than it previously thought. (K.M. Chaudary/The Associated Press)

What else is going on?

Here’s how the housing landscape could change under a newly re-elected Liberal government
Ottawa looks very similar post-election, but there is optimism about affordability — if promises are kept.

Office vacancies are at a pandemic high. Blame the fourth wave
The vacancy rate rose to 15.7 per cent in the third quarter of 2021, according to CBRE Group Inc., a commercial real estate firm.

The EU wants to push all smartphone makers to use the same charging point. Even Apple 
EU wants to cut down on 10,000 tonnes a year of e-waste generated by obsolete tech.

Is your device spying on you? CBC Kids News has the answers
Experts say that’s a bit of a stretch.

Marketplace needs your help

Are you currently in a fight with your home insurance company over flooding or water damage? We want to hear your story! Email us at marketplace@cbc.ca.  

Do you get harassing phone calls demanding you owe the CRA money for unpaid taxes? Or callers claiming you’ve got a virus and need tech support? If so, we want to hear from you. Send us a video message detailing your experience so we may use it in our show! And share your phone number so we can get in touch! Email us at marketplace@cbc.ca 

Season premiere this Friday

Marketplace is back!

Join Charlsie Agro as we investigate the quality of some of the world’s top fast fashion brands. The clothes might be trendy and the price might be right, but you’ll be shocked to learn some of these garments might actually be toxic. 

Tune in Friday at 8 p.m., 8:30 in Newfoundland and Labrador on CBC Television and CBC Gem.

You won’t want to miss it. 

Catch up on past episodes of Marketplace any time on CBC Gem.

Adblock test (Why?)



Source link

Continue Reading

Business

U.S. vaccination requirement for air passengers worries Canadians with mixed vaccines – Yahoo News Canada

Published

 on


The U.S. announced on Monday that, come early November, foreign air passengers to the U.S. will have to show proof that they're fully vaccinated.   (Kevin Lamarque/Reuters - image credit)

The U.S. announced on Monday that, come early November, foreign air passengers to the U.S. will have to show proof that they’re fully vaccinated. (Kevin Lamarque/Reuters – image credit)

Canadian travellers have been able to fly freely to the United States since the start of the pandemic, but new U.S. travel rules announced Monday have some Canadians with two different COVID-19 vaccine doses worried they may soon be barred from entry.

Starting in early November, the U.S. will require foreign air passengers entering the country to be fully vaccinated. The problem is, the U.S. has yet to approve mixing COVID-19 vaccines.

“I’m really worried about this U.S. policy,” said Cathy Hiuser of Ancaster, Ont., who has one dose of COVIDSHIELD (a brand of AstraZeneca) and one dose of Pfizer. She has booked a trip to Maui, departing Nov. 7.

“I don’t even know if I’ll be able to go across the border,” she said. “It’s a problem.”

At the same time as the U.S. introduces its vaccine requirement, the country will lift its travel ban on air passengers entering from a list of dozens of red-flagged countries.

“We’ll be putting in place strict protocols to prevent the spread of COVID-19 from passengers flying internationally into the United States,” said White House press secretary Jen Psaki on Monday.

Chris Glover/CBCChris Glover/CBC

Chris Glover/CBC

CBC News asked the U.S. Centers for Disease Control (CDC) if the millions of Canadians with mixed vaccines will still be allowed to fly to the country when the vaccine requirement kicks in. The CDC said it’s in the “regulatory process” phase in determining which vaccines will be accepted.

The agency also laid out its current policy: it considers people fully vaccinated when they have all recommended doses of the same COVID-19 vaccine, such as Pfizer, Moderna or AstraZeneca.

“At present CDC does not recognize mixed vaccines,” said spokesperson Kristen Nordlund.

But there are exceptions to the rule. The CDC says on its website that mixed doses of the two mRNA vaccines, Pfizer and Moderna, are acceptable in “exceptional situations,” such as when the vaccine used for the first dose was no longer available.

However, a combination of AstraZeneca and an mRNA vaccine won’t meet the bar, a position adopted by cruise ships departing from U.S. ports.

“Guests whose two-shot regimen consists of 1 mRNA dose (Pfizer or Moderna) with 1 AstraZeneca dose will not be considered vaccinated,” states Royal Caribbean cruise line on its website. “We continue to encourage the CDC and other U.S. government officials to re-evaluate this policy.”

‘I started to cry’

Canada is one of several countries — including Germany, Italy, France and Thailand — that has doled out mixed vaccines to a number of its citizens. But there is no international consensus on the practice.

The CDC said the U.S. is conducting trials on the safety and effectiveness of mixed vaccines, and that the agency may update its vaccine recommendations once it has new data.

But that’s of little comfort to Canadians with mixed doses who’ve already made travel plans to the U.S., such as snowbirds and those who’ve booked winter vacations.

In May, Norma Chrobak of Orillia, Ont., booked a special family trip to the U.S. Virgin Islands to celebrate her partner’s 75th birthday. The trip consists of a week-long chartered boat cruise in February — at a cost of $26,000.

submitted by Norma Chrobaksubmitted by Norma Chrobak

submitted by Norma Chrobak

The problem is, five out of the 10 family members set to go on the trip — including Chrobak and her partner — have a mix of AstraZeneca and Moderna.

“My heart just almost exploded in my chest,” said Chrobak when she learned about the coming U.S. vaccine requirement for travellers. “I started to cry.”

She has already paid a $12,500 deposit for the trip and is unsure at this point if she can get a refund if it must be cancelled.

The trip was supposed to be a surprise birthday gift for Chrobak’s partner. But she’s speaking publicly about it in the hopes the Canadian government will pressure the U.S. to accept mixed vaccines.

“Somebody’s got to take this bull by the horns,” she said. “There’s got to be something that can be done.”

WATCH | Travellers with mixed vaccines say they can’t board some cruises:

Canada updated its vaccination guidelines in June to recommend mixing COVID-19 vaccine doses based on emerging research that found it was both safe and effective.

On Thursday, Chief Public Health Officer Dr. Theresa Tam said Canada is in talks with the U.S. about its coming vaccine requirement for foreign air passengers.

“We have had quite a series of discussions with U.S. counterparts,” she said during a news conference. “We’ve basically been providing some technical support to help them make a decision on the mixed dose, particularly AstraZeneca followed by an mRNA vaccine.”

The waiting game

Lawyer Henry Chang, who specializes in Canadian and U.S. immigration law, said he’s optimistic the U.S. will soon change its position on mixed vaccines.

“My gut feeling is that they’re going to have to resolve it. If not right when the vaccine requirements come in, soon after, because there are going to be too many people complaining about this,” said Chang, who is with the law firm Dentons in Toronto.

If the U.S. doesn’t budge on mixed vaccines come November, some Canadians will still have options. Quebec, Manitoba, Saskatchewan and Alberta are each offering third vaccine doses to people in their province who require it for travel.

But that doesn’t help potential travellers such as Chrobak in Ontario, who must wait to find out the fate of her trip.

“Pretty much just feeling devastated, feeling like I have no control,” she said.

Adblock test (Why?)



Source link

Continue Reading

Trending