Canadian Pacific's Megadeal for Kansas City Southern Is Done... Sorta

The yearlong saga by Kansas City Southern (NYSE: KSU) to find a buyer came to an end on Dec. 14, when Canadian Pacific Railway (NYSE: CP) completed its deal to acquire Kansas City stock for $31 billion. Kansas City Southern shareholders received $90 in cash and 2.884 Canadian Pacific shares for each share they held. Rather, the operations will roll into a special voting trust that's required to be arm's length from Canadian Pacific while regulators decide if a merger should be allowed. The convoluted trust structure is awkward, at best, and could lead to some real issues for Canadian Pacific through the end of 2022.