Topic: How To Invest

The Successful Investor Hotline – Friday, December 17, 2021

Article Excerpt

CANADIAN PACIFIC RAILWAY LTD., $93.40, Toronto symbol CP, is your #1 Conservative Buy for 2021. CP ships freight over a 23,700-kilometre rail network, mainly between Montreal and Vancouver. It also links to hubs in the U.S. Midwest and Northeast. The company has now completed the first stage of its acquisition of U.S.-based Kansas City Southern (New York symbol KSU). KCS operates a rail network of roughly 11,400 kilometres extending from the U.S. Midwest and Southeast into Mexico. Under the terms of the offer, KCS investors received 2.884 CP common shares plus $90.00 U.S. in cash for each share held. If you include KCS’s debt, the entire offer is worth $31 billion U.S. (as of August 9, 2021). CP investors now own 72% of the merged company, with KCS shareholders holding the remaining 28%. The company has deposited the KCS shares into an independent voting trust. The trust, managed by KCS’s officers and directors, will continue run that business while the U.S. Surface Transportation Board (STB)…