Western Railroad Discussion > RR Share Performance Since CP's Bid for KCS; Might be Surprising

Have attached a chart that shows railroad stock performance for the past eight weeks since CP's bid for KCS..
As expected, KCS has been the star performer increasing 37.85%.
KCS did fall about $4 today.  It is priced about $23 over CP's bid.
I was surprised by CSX's performance.
ALLEN
 

Nice but a daily graph of each railroad would display quicker.

PlyWoody Wrote:
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> Nice but a daily graph of each railroad would
> display quicker.

Then post a daily graph for everyone to see.
ALLEN

 

It is typical for the stock of a company making an acquisition to drop. 

MSE Wrote:
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> It is typical for the stock of a company making an acquisition to drop. 

CP is up.

Here you go. Scaled so March 19th is the 100% mark.
1) Showing all six railroads (BNSF is not publicly traded) for the year.
2) Showing all six railroads since March 19th
3) Showing KSU, CP and CNI since March 19th

Dates to consider:
March 19th close before CP bids $275 to purchase KCS (then trading at $224)
April 19th close before CN bids $325 to purchase KCS (then trading at $256)
April 23rd - STB approves CP-KCS to use pre-2001 rules
May 6th - STB approves CP-KCS to use a Voting Trust (with minor adjustments)
May 13th close before CN raises their bid to $325 to purchase KCS (then trading at $313) - CN's bid had dropped to $317 due to CN stock price drop
May 14th - CP 5 for 1 stock split (announced in January, stockholder approved April 21st)

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One more chart ...
CP and CN offer percentages based on KCS stock price on March 19th.

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krm152 Wrote:
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> Thanks for the interesting graphs.  I never learned to use Power Point.

Graphs created using Excel. :)

My admin assistant did all of my graphs and presentations when I was working. Never learned to prepare graphs after I retired.
ALLEN

MSE Wrote:
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> It is typical for the stock of a company making an
> acquisition to drop. 

I think you said it too early. Yes, it's typical after the acquisition is official. We're still in the rumor stage (even if there's a bidding war), and you know about "buy on rumor, sell on news." :-)
 

It should be noted that CP dropped slightly and then recovered within two weeks. KCS (the merger target) had a reasonable increase.
When CN announced their unsolicited bid their stock dropped and did not recover. KCS shot up to near the current levels.
CN's stock dropped enough that when they raised their bid on Friday it matched the price they offered April 19th.

The STB approvals for CP's requests have not had a severe impact on the stock prices but are noted on the charts above.