Western Railroad Discussion > KCS Isn’t For Sale. Quit Salivating

https://www.railwayage.com/news/kcs-isnt-for-sale-quit-salivating/

That's over a month old.

From the article:

xpanding upon what Pat Ottensmeyer said, there are other reasons why Kansas City Southern isn’t up for grabs. There might be “private-equity infrastructure investment funds … poised to scoop up a Class I for its future cash-flow stream, as Brookfield Infrastructure Partners acquired small-railroad holding company Genesee & Wyoming for $6.5 billion,” Capitol Hill Contributing Editor Frank N. Wilner wrote in April, but bear in mind that KCS’s price tag would most likely be beyond the scope of a private-equity fund.

Maybe too much from just one fund, but it appears there is a combination of funds looking to acquire KCS. Altogether they may be too much for KCS to oppose.

Might be true, might not be.

About 96% of Kansas City Southern's stock is held by institutions.  Pension funds, 401(k) managers, church and college endowments, mutual funds, etc.  Not by individuals.

I mentioned on the thread last month that many of these holders are fiduciaries, and are bound to do what's best for the beneficiaries. Get a couple of big ones (Fidelity, Vanguard, State Street, Blackstone, etc) in your corner and your offer will be considered.  Blackstone is reportedly making this offer.

Or, it might be another late Fiday, late Summer, fun at the beach opportunity to start a rumor and shake some short sellers and make some money.  With 96% of shares held by institutions, a 2% short position might have some challenges.

WOW.  I am one of the individual owners.  I have had the shares many years with a nice return.  My shares are available at the right price.  I would say otherwise if the dividend were somewhat higher but it is only about 1%

The Wall Street Journal article is reporting possibly $21 billion.  That might be hard to resist.

Lackawanna484 Wrote:
-------------------------------------------------------
> I mentioned on the thread last month that many of
> these holders are fiduciaries, and are bound to do
> what's best for the beneficiaries. Get a couple of
> big ones (Fidelity, Vanguard, State Street,
> Blackstone, etc) in your corner and your offer
> will be considered.  Blackstone is reportedly
> making this offer.

I'll be disappointed if Washington D.C. connected firms aren't involved, which you speculated in that thread. Fidelity/Vanguard/Blackstone/etc are probably not keen on geopolitical and global trade issues as the D.C. connected firms are, so it's going to be more of the same (Wall St. mentality) if this acquisition happens.

> Or, it might be another late Fiday, late Summer,
> fun at the beach opportunity to start a rumor and
> shake some short sellers and make some money. 

As long as KCS management ignore the Stupid Wall St. Games, no harm done.