Topic: How To Invest

The Successful Investor Hotline – Friday, March 17, 2023

Article Excerpt

CANADIAN PACIFIC RAILWAY LTD., $106.14, Toronto symbol CP, is your #1 Conservative Buy for 2023. The company has received approval from the U.S. Surface Transportation Board for its acquisition of U.S.-based railway Kansas City Southern (KCS). CP originally completed acquisition in December 2021. It deposited the KCS shares into an independent voting trust, which operated that business while the regulator studied the purchase. The company paid $31 billion U.S. in cash and shares for KCS. CP investors own 72% of the merged company, with KCS shareholders holding the remaining 28%. CP will begin merging the two businesses on April 14, 2023. The company also plans to change its name to Canadian Pacific Kansas City Ltd. (CPKC). The shares will continue to trade on both the Toronto and New York exchanges. The new CPKC will ship freight over a 32,190-kilometre rail network. That line runs mainly between Montreal and Vancouver, with links to hubs in the U.S. Midwest and Northeast. With the addition of KSC, the new…