TCI says CN Rail’s top two execs should quit

Corporate crossroads: A file picture showing a man walking near CN’s headquarters in Montreal. The company is disappointed with the decision made by STB and is evaluating available options. — AP

MONTREAL: Canadian National Railway Co’s (CN) proposed US$30bil (RM124.35bil) takeover of Kansas City Southern (KCS) is under attack after it failed to pass a key regulatory hurdle and faced an immediate call to drop the bid from one of its largest shareholders.

London-based TCI Fund Management Ltd, which owns more than 5% of Canadian National’s shares, said it’s imperative the rail operator walks away from the merger agreement after the US Surface Transportation Board (STB) rejected a request for a voting trust central to the deal.