Fun Fact of The Day 🌞
Nokia was once famous as a manufacturer of toilet paper
Here's what you need to know before the US markets open.
What to expect in today's market🕒
eBay Inc. Earnings (EBAY)
Marqeta Inc. Earnings (MQ)
Wendy's Co. Earnings (WEN)
Sonos Inc. Earnings (SONO)
Avnet Inc. Earnings (AVT)
Ftac Olympus Acquisition Corp. Earnings (PAYO)
12:30 PM GMT: Consumer Price Index
🚂 Kansas City Southern: Whose Train Is It Anyway?
In March this year, Canadian Pacific Railway (CP) bid $29B to acquire Kansas City Southern. The bid included Kansas City Southern's outstanding debt of $3.8B. The combined company would be the first US-Mexico-Canada railway network and would operate 20K miles of rail, employ close to 20K people, with total revenues of ~$8.7B (based on 2020 numbers).
Enter Canadian National Railway (CNI) - the largest railway network in Canada which operates 19.9K miles of railroad. The company outbid rival Canadian Pacific with a $33.6B (including debt) offer for Kansas City Southern in April. Kansas City Southern, which until then was fully aligned to Canadian Pacific decided to go with Canadian National and even paid a $700M termination fee to Canadian Pacific.
This new alliance would have been among the largest intermodal networks in North America covering 26.5K miles. Canadian National's cash and stock bid was worth $321 per share. So all done and dusted, you’d think. Not so fast. Where there’s big money, there are regulators circling above.
Market Reaction
KSU ended the day at $289.75, up 7.47%.
Newsworthy 📰
Variety:
PepsiCo and Boston Beer to create alcoholic Mountain Dew drink (PEP +0.05%)
Resumption:
Exxon launches US shale gas sale to kick-start stalled divestitures (XOM +1.71%)
Results:
Coinbase profits surge following a volatile stretch of cryptocurrency trading (COIN -3.85%)
What Next?
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