Canadian National Railway - CNI STOCK NEWS

CN Launches Rail Safety Awareness Campaign

On September 20, 2021, CN initiated its annual rail safety awareness campaign during Rail Safety Week, running until September 26, 2021. The campaign aims to educate communities about the dangers of trespassing on tracks and ignoring safety signals. CN reported 1,901 incidents last year in the U.S., leading to 198 fatalities. Over 130 municipalities have joined the campaign. CN emphasizes shared responsibility in rail safety, encouraging individuals to remain vigilant as daily commutes resume amidst the ongoing pandemic recovery.

CN is promoting Rail Safety Week from September 20 to 26, emphasizing the importance of safety at rail crossings and the need to prevent trespassing. The CN Police Service will be available for media interviews to discuss these topics. A public awareness campaign will accompany safety initiatives at commuter stations and railway crossings, aiming to reduce accidents related to collisions and trespassing. This initiative reflects CN's commitment to enhancing rail safety and protecting the community.

CN (CNI) has unveiled an ambitious value creation plan aiming for C$700 million in additional operating income and a 57% operating ratio for 2022. The company will reduce capital spending to 17% of revenue while maintaining a focus on safety and customer service. Share repurchases of C$1.1 billion will resume, with a target of C$5 billion in total shareholder distributions for 2022. Its outlook includes a projected 20% EPS growth and commitment to environmental, social, and governance (ESG) principles.

CN has announced a strategic plan, 'Full Speed Ahead – Redefining Railroading,' targeting an additional C$700 million in operating income by optimizing operations and maintaining a 57% operating ratio for 2022. The company plans a 17% capital expenditure relative to revenue, reflecting strong network conditions. CN will resume its share repurchase program with C$1.1 billion remaining. Expected EPS growth is around 20%, and capital investments projected at C$3 billion, with free cash flow anticipated between C$3.0 to C$3.3 billion for 2021.

Kansas City Southern (NYSE: KSU) announced its Board's determination that the acquisition proposal from Canadian Pacific Railway (TSX: CP, NYSE: CP) as of September 12, 2021, is a "Company Superior Proposal". Consequently, KCS terminated its existing merger agreement with Canadian National Railway (TSX: CNI, NYSE: CNI). The new CP merger terms include $90 in cash and 2.884 CP shares for each KCS common stockholder, and $37.50 in cash for preferred stockholders. KCS will pay a $700 million breakup fee to CN, which will be reimbursed by CP upon closing, subject to shareholder and regulatory approvals.

On September 15, 2021, CN (CNI) announced it will receive USD$1.4 billion in termination fees from Kansas City Southern (KSU) after KCS terminated their merger agreement. This includes a USD$700 million Company Termination Fee and a USD$700 million CP Termination Fee Refund. While CN is disappointed by the termination, it acknowledges the evolving U.S. regulatory landscape has created uncertainty for Class I mergers. CN remains committed to pursuing profitable growth and will outline its strategic priorities in the near future.

CN (TSX: CNR, NYSE: CNI) acknowledges TCI Fund Management Limited's intent to requisition a shareholder meeting on September 13, 2021. While CN has yet to receive the formal requisition, it plans to review and respond accordingly. CN operates a vast 19,500-mile rail network, essential for transporting over 300 million tons of goods annually across North America, contributing significantly to economic and community prosperity.

TCI Fund Management plans to requisition a special shareholder meeting for Canadian National Railway Company (CNI) to refresh its Board of Directors by nominating four experienced independent candidates. TCI criticizes the current board for lacking railroad operational expertise and points to underperformance. The nominees, including Jim Vena, are expected to bring necessary skills for enhancing operational and financial performance. TCI advocates for a low-carbon approach in the rail industry, emphasizing the need for a focus on operational excellence to foster growth.

Kansas City Southern (KSU) announced that its Board of Directors has deemed Canadian Pacific's (CP) revised proposal a "Company Superior Proposal" compared to its current merger agreement with Canadian National Railway Company (CNI). The proposal includes exchanging each share of KSU common stock for 2.884 shares of CP and $90 in cash, with KSU preferred stockholders receiving $37.50 in cash. KSU plans to terminate its agreement with CNI and may accept CP's offer pending negotiation rights for CNI.