Western Railroad Discussion > KCS halted from trading this afternoon, up $24 last hour,

Combination of Private Equity Group looking to purchase......

Blackstone Group
Global Infrastructure Partners
Citigroup

could be others



Edited 1 time(s). Last edit at 07/31/20 12:43 by markyk.

The Wall Street Journal is reporting this.

A group of big buyout investors is considering a takeover bid for railroad operator Kansas City Southern KSU +9.08% that could be worth more than $21 billion and mark a big bet on U.S.-Mexico trade.

Behind a pay wall:  https://www.wsj.com/articles/private-equity-firms-discuss-bid-for-kansas-city-southern-11596223106?mod=hp_lead_pos3

Wow. My KSU is up 416% since I bought it. Cashed some of it oout a couple years ago. Wish I hadn't.

Here we go again. Will another 3rd major railroad company taken private? BNSF, G&W, now KCS? The benefits of taking a railroad private is that they no longer have to bend to the short-term outlook of Wall Street. A KCS that has the ability to look 10-15 years in the future instead of 5 could become a greater powerhouse than it already is. Remember that looking long term is what built the modern KCS.

Somebody on this forum a while back (I think it was Vicksburg_Route?) said that KCS might be valuable in the hands of an infrastructure firm, leasing out parts of KCS to other railroads. That is certainly an interesting prospect. Whatever the buyers have planned for KCS might forever remain a mystery, or might be revealed very soon, depending on how all of this goes.

KCS going from a nearly bankrupt railroad in the early 70s, to one of the last 7 major railroads on the North American continent in 2020, is probably one of the greatest underdog stories in railroading. Somebody should write a book.

Be a blood bath at UP, the board would look at KCS management. then look at UP management and quckly send the
letter about the door and your butt!

Out

Private ownership can allow a business to adopt a longer term perspective but, that’s not necessarily a guarantee.

I worked for several companies during my career that had private ownership. One was real good whereas the others two were interested only in raking as much cash in as short a time as possible. They had absolutely no interest in growing either business.

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