Judge Dismisses Suit To Block Rail Merger
A Delaware Chancery Court judge has dismissed a lawsuit filed by Santa Fe Pacific Corp. shareholders seeking to block the railroad’s $4 billion merger with Burlington Northern Inc.
Vice Chancellor Jack Jacobs said in a 24-page ruling released Thursday that dissident shareholders had failed to support allegations Santa Fe’s board did not seek the best value for the company.
Jacobs said the board acted properly on its “business judgment” to approve the merger with Fort Worth, Texas-based Burlington Northern.
Santa Fe was the subject of a four-month bidding war between Burlington Northern and Union Pacific Corp. as they sought the company’s lucrative western United States routes.