Western Railroad Discussion > KCS rumors, UP, BNSF purchase?

I'm even hesitant to bring this up but, a few days ago I got a blurb from one of my internet financial firms saying KCS stock took an increase based on rumor of UP and BNSF looking to jointly buy KCS.  It mentioned the possibility of an infrastructure company.  Does that sound like open access for the UP and BNSF on KCS?  Have not seen anything else so I assume this may have been a bad rumor.  Just wondered if anyone else has seen/heard anything.  TO has been strangely quiet.

Mexrail



Edited 1 time(s). Last edit at 06/26/20 13:57 by mexrail.

Thanks, interesting to say the least!

Oh boy.  That is very interesting...

JB - Omaha

Nothing frpom the market, so far. 

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That's the only way it could happen-open access by both companies. The STB would die laughing it either were to attempt to buy the KCS.,
I don't have a big enough font to type "anti-competitve" for that deal.

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I still think CN and CP will have something to say about such a deal.

Ted Curphey
Ontario, OR

Let'em. they'll see how much weight the Canadians have down here, or more likely, don't have. In fact
the open access deal would be seen as a competitive measure to CN. 

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Edited 1 time(s). Last edit at 06/26/20 15:56 by callum_out.

If they did open access, that would lead to demands for open access to the whole railroad system. Call me skeptic.

But on the other hand, maybe they are a step ahead of everyone else and have figured that PSR is causing the industry to auger in.

I wonder what the Meridian Speedway partner NS is thinking? 

Yep, they didn't have have much weight when CN wanted BNSF or was it just Santa Fe? Can't remember.

It was just Santa Fe and that got some nasty looks in light of the Canadians taking over a major American railroad
with West coast port access. It was feared that much traffic would be diverted to Vancouver BC out of Chicago.

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callum_out Wrote:
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> It was just Santa Fe and that got some nasty looks
>
> Out 

BNSF and CN announced intent to merge December 20, 1999, so no, it was in fact the entire BNSF.

Imagine what the railroad picture would look like today if it had been allowed.

funnelfan Wrote:
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> I still think CN and CP will have something to say
> about such a deal.

if any r.r. took over kcs, i sure thought c.p. would be the one..............

66

There have been rumors of BNSF taking over KCS for years and other railroads (such as IC in the mid-1990s) have tried. If somebody was going to purchase KCS, it would have happened already. 

Well so far no acknowledgement on TO of any rumors, etc. leading to any veracity of something cooking.  Might have been a slow day at the financial firm ,which shall remain nameless!

Mexrail

If a deal happens, it could be with a non-rail buyer.

Somebody like Carlyle, Macquarie, KKR, etc. They are incredibly well connected in DC. And Mexico.

Probably sell for $16-18 billion plus debt assumed...

Posted from Android

callum_out Wrote:
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> That's the only way it could happen-open access by
> both companies. The STB would die laughing it
> either were to attempt to buy the KCS.,
> I don't have a big enough font to type
> "anti-competitve" for that deal.
>
> Out 

Either companies don't need to spend $billions just to get open access (about $14 billion right now). They simply have to negotiate. So yeah, even if we don't consider anti-competitiveness, there's no need to buy KCS.

mexrail Wrote:
-------------------------------------------------------
> Well so far no acknowledgement on TO of any
> rumors, etc. leading to any veracity of something
> cooking.  Might have been a slow day at the
> financial firm ,which shall remain nameless!
>
> Mexrail

Could have been a Blue Horseshoe moment. I say it for the record now, so people can examine possible market manipulation. Got Saturday and Sunday for your "rumor" to sink in before Monday.

I remember back in 1999, when someone from a financial firm who shall remain nameless mentioned a stock symbol - "take a look," he said. Next day it shot up 3x to 4x. Don't know whether he was trying to help me make money, or teach me about the market, but it was astonishing to say the least. Luckily, I didn't participate, and that's good for obvious reasons.



Edited 1 time(s). Last edit at 06/26/20 18:18 by cchan006.

A story in two parts: 

https://seekingalpha.com/news/3585521-merger-chatter-sends-kansas-city-southern-higher (Turns out this rumor has gotten out among some KCS stockholders.)

https://www.railwayage.com/freight/kcs-isnt-for-sale-quit-salivating/  (A good article from Railway Age by William C. Vantuono about why this isn't going to amount to anything.) 

I believe there was a prior discussion between SF and CN some time before the BNSF talks.

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Negotiate with who? I don't think KCS wants any part of UP and BNSF on their lines. This might be more of a hostile takeover
'than anything else.

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