CN and WCTC Welcome United States Surface Transportation Board Ruling.Business Editors MONTREAL & ROSEMONT, Ill.--(BUSINESS WIRE)--May 9, 2001 Canadian National Railway Company Canadian National Railway Company (NYSE: CNI, TSX: CNR) is a Canadian rail transportation company that operates the Canadian National Railway. It was created in December, 1918 as a Crown corporation of the Government of Canada to nationalize several bankrupt rail systems ("CN") (NYSE NYSE See: New York Stock Exchange :CNI) (TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). :CNR.) and Wisconsin Central Transportation Corporation ("WCTC WCTC Waukesha County Technical College (Wisconsin) WCTC West Central Technical College WCTC Wood County Telephone Company WCTC Wisconsin Central Transportation Corporation WCTC Washington Community and Technical Colleges ") (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :WCLX) welcomed the Surface Transportation Board's decision today to treat the proposed CN/WCTC merger as a "minor" transaction for regulatory review purposes. Today's STB order establishes a schedule anticipating a final agency decision in the merger proceeding by Sept. 7, 2001. CN and WCTC filed a common control application with the STB April 9. Paul M. Tellier, CN's president and chief executive officer, said: "CN is pleased with today's STB ruling, and we believe the record will show that the transaction merits the agency's approval. The procedural schedule for this minor transaction is realistic and should give interested parties ample time to comment on it. "The simple, straightforward combination of CN and WCTC is already supported by more than 330 shippers, local governments and officials, chambers of commerce, public agencies (including port authorities and economic development agencies), and other railroads. In addition, the National Industrial Transportation League, which has more than 600 company members, including some of the largest rail shippers in the United States, endorses the merger. This tally is greater than the number of parties that supported CN's highly-successful 1998 merger with Illinois Central." Thomas F. Power, Jr., president and chief executive officer of WCTC, said: "I, too, am gratified by today's STB decision to treat the CN/WCTC merger as a minor transaction with a timely procedural schedule. WCTC believes merging with CN is in the best interests of WC shippers, shareholders and employees." The CN/WCTC merger will secure CN ownership and control of a link in its NAFTA NAFTA in full North American Free Trade Agreement Trade pact signed by Canada, the U.S., and Mexico in 1992, which took effect in 1994. Inspired by the success of the European Community in reducing trade barriers among its members, NAFTA created the world's network between Superior, Wis., and Chicago. In addition, it will generate service efficiency gains for shippers and enhance transportation competition. CN will maintain existing rail gateways affected by the transaction, and its service assurance plan will assure that service on the combined CN/WC network is as good as, or better than, today's service. Canadian National Railway Company spans Canada and mid-America, from the Atlantic and Pacific oceans, to the Gulf of Mexico Noun 1. Gulf of Mexico - an arm of the Atlantic to the south of the United States and to the east of Mexico Golfo de Mexico Atlantic, Atlantic Ocean - the 2nd largest ocean; separates North and South America on the west from Europe and Africa on the east , serving the ports of Vancouver, Prince Rupert, B.C., Montreal, Halifax, New Orleans, and Mobile, Ala., and the key cities of Toronto, Buffalo, Chicago, Detroit, Memphis, St. Louis, and Jackson, Miss., with connections to all points in North America. CN's 2000 revenues were C$5,428 million (US$3,654 million). WCTC's North American rail system comprises approximately 2,800 route miles of track and trackage track·age n. 1. Railway tracks. 2. a. The right of one railroad company to use the track system of another. b. The charge for this right. rights. Revenues for 2000 were US$372 million. The system's principal gateways are Chicago; Duluth, Minn./Superior, Wis.; Green Bay, Wis.; Milwaukee; Minneapolis/St. Paul and Sault Ste Marie, Ont. Its principal North American subsidiaries are Wisconsin Central Ltd., Fox Valley & Western Ltd., Algoma Central Railway The Algoma Central Railway (AAR reporting marks AC, ACIS) was a railway in Northern Ontario that ran between Sault Ste. Marie and Hearst, with a branch line to Michipicoten. The area served by the railway is sparsely populated, with few roads. Inc., Sault Ste. Marie Sault Sainte Marie — pronounced "Soo Saint Marie" (IPA /su seɪnt məˈɹi/) — is the name of two cities on the Saint Marys River, which forms part of the boundary between the United States and Canada. Bridge Company and Wisconsin Chicago Link Ltd. More information about the transaction, including a map of the combined CN/WC network in North America, is available at www.cn.ca. This news release contains forward-looking statements. CN and WCTC caution that, by their nature, forward-looking statements involve risk and uncertainty and that each of their results could differ materially from those expressed or implied in such statements. Reference should be made to CN's most recent Form 40-F, and WCTC's most recent Form 10-K, filed with the United States Securities and Exchange Commission (SEC) for a summary of major risk factors. |
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