• Private Equity Firms Eye Kansas City Southern Takeover

  • Discussion related to the past and present operations of Kansas City Southern Lines, including affiliates Texas Mexican Railway, Grupo Transportation Ferroviaria Mexicana (TFM), and Panama Canal Railway Co. Official web site can be found here: KCSOUTHERN.COM.
Discussion related to the past and present operations of Kansas City Southern Lines, including affiliates Texas Mexican Railway, Grupo Transportation Ferroviaria Mexicana (TFM), and Panama Canal Railway Co. Official web site can be found here: KCSOUTHERN.COM.

Moderator: GOLDEN-ARM

  by Pensyfan19
 
Bid, DENIED!

https://trn.trains.com/news/news-wire/2 ... y-railroad
Kansas City Southern has turned down the latest bid to buy the railroad, the Wall Street Journal is reporting. In a paywalled article, the Journal reports that Global Infrastructure Partners and Blackstone Group Inc.’s infrastructure arm had offered $208 a share, or roughly $20 billion, for the Class I railroad, which felt the takeover bid undervalued the railroad. The two sides are reportedly no longer in discussions.

The bid from Global and Blackstone was reported last week [see “Digest: Investment groups make new offer to buy Kansas City Southern,” Sept. 3] and was the second after an offer was rebuffed earlier this year.

KCS, the smallest of the U.S. Class I railroads, said Wednesday that it expects 2020 earnings per share to be similar to those in 2019.
  by Gilbert B Norman
 
A bad date; we've all had 'em :wink:

I must wonder to what extent Inter-American trade "played" first in the "target" by private equity, and now the "walk". Was the bet on Mexican political stability just too long a shot.

I hold that the Port of Lazaro Cardenas, Mich could be a "gold mine" with its lower labor costs and with KCS-M "the only game in town". But if the possibility of theft while in transit and too many "greasy palms" about, the private equity outfits concluded "it's not worth it".

"Next stop" for Blackstone could be Pan Am (B&M) - a sick road waiting to be chopped up and become tech industry "angel $$$".