Why Canadian National Stock Is Up This Week
Regulators appear skeptical about Canadian National's (NYSE: CNI) planned $33 billion deal for Kansas City Southern (NYSE: KSU), and investors welcomed the skepticism. Shares of Canadian National traded up nearly 16% for the week as of Friday at noon EST on speculation that the deal won't get done.
Canadian National's bid for Kansas City Southern always seemed destined for close regulatory scrutiny, and the U.S. government has not disappointed. The Surface Transportation Board (STB) on Aug. 31 rejected a bid by Canadian National to form a voting trust to help facilitate the deal, saying the combination "would create a combination of potential harms to the public interest."
Image source: Canadian National.
Source Fool.com
