"We will not indulge unfounded and bad-faith arguments that serve the interests of one shareholder over others," said CN chief executive
He said that CN maintains an open and constructive dialogue with its shareholders, and is open to discussions about improvements, but that he wouldn't serve the interests of CN's competitors.
The comments come after TCI criticized CN's management and strategy, and criticized the railway for its risky and failed bid for
TCI asked in mid-September for a special meeting of CN shareholders for the purpose of "refreshing" the railway's board and proposed
CN said that TCI has failed to put out a credible or differentiated plan of its own, and that it has a conflict of interest as being the largest shareholder of CN's main rival,
"TCI’s motives are highly suspect," the railway said in the statement.
"(It) is trying to assert effective control over CN without presenting a credible plan to create superior or sustainable value."
The
"CN shareholders should question TCI’s motives of endorsing CN’s closest competitor to pursue the transaction, while ignoring the equally compelling rationale of CN’s interest of pursuing the same transaction,"
"CN believes the critical difference is that CP has limited long-term growth opportunities without KCS, while CN’s future as a standalone business is bright."
CN raised concerns about how TCI has measured the railway's financial performance.
It also pointed out that the board chair TCI is asking to step down had already announced in March that he would be doing so because he would be reaching his term limit.
TCI managing partner
The often testy battle between
KCS switched alliances a month later by declaring CN's cash-and-stock bid valued at
However, the
This report by
Companies in this story: (TSX:CNR, TSX:CP)
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