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Uke


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Another BIG merger?
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Checkin' CN, and CP earlier... This came up:

 

Kansas City Southern on Track for Takeover: Real M&A

By Brooke Sutherland & Frederic Tomesco - May 17, 2013 7:33 AM PT


If it does happen... Kansas City Southern, it won't be cheap, judging from their current revenue sheet. The outfit is in pretty good shape right now, and perfectly positioned for a takeover. KCS would fit with any of the bigs... UP, or CP, CN, or BNSF. (Make that Uncle Warren's outfit, which isn't a real railroad at all!).

More of the story:http://www.bloomberg.com/news/2013-05-17/kansas-city-southern-on-track-for-takeover-real-m-a.html



-- Edited by Uke on Monday 26th of August 2013 01:33:45 PM

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Freddie Krueger


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Warren has the cash.

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Uke


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That he does! It wouldn't be a surprise IF Berkshire Hathaway bought the entire KCS, all the way inta Mexico!

KCS bought the better part of the Eastern Mexican Railways from the state, and that route's been significantly upgraded. It leads straight from the ports, inland where the branch joins the mainland route north and south.

On their own KCS makes money, and Uncle Warren loves money. And railroads. So we'll see...

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Freddie Krueger


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I am wondering if we can stop it, unless we can unionize them with the same prevailing wages here. It might start a revolution though....

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Uke


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Shop forces ARE unionized. Couldn't say anything about operating personnel though. The former CEO, Mike Haverty was a "Through-the-ranks..." railroader, so perhaps KCS is already unionized top down!

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Snippy


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KCS is in a perfect position to takeover LAMCO. You heard it here second.

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Uke


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Uncle warren dumped his portion of UP ta buy BNSF, at least the portion that he didn't already own... So what's he up to now?

Could Kansas City be next? We know he likes railroads. He might just buy KCS and fold it into BNSF...then it too disappears from the New York stock exchange. Looks like KCS is pretty healthy right now, and they're making money for the shareholders...

http://www.bloomberg.com/news/2013-06-06/buffett-rail-rally-defies-analysts-seeing-end-to-gains.html



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Snippy


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Snippy wrote:

KCS is in a perfect position to takeover LAMCO. You heard it here second.

 



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The Krink


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KCS is a "loose-end" that needs to be gobbled-up. Sure

BNSF can figure out how to "include it".

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The Krink


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Think the KCS line from KC south will undergo all kinds
"not needed anymore". What KCS has accumulated over
the years is "connections" and I'm quite sure BNSF is
going to exploit those connections.

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Snippy


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Snippy wrote:

KCS is in a perfect position to do a leveraged takeover LAMCO. You heard it here again. KCS LAMCO is the most natural. BNSF/KCS has regulatory problems.

 

 



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The Krink


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Well I'm sure I'll learn it here first or second-hand
what happens to the KCS next.

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Uke


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Currently Union Pacific owns 26% of Ferromex while Grupo México owns the remaining 74%. Union Pacific's leading railroad competitor is the BNSF Railway, which covers much of the same territory.

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