Report: Kansas City Southern Sale In the Works

Kansas City Southern GE ES44AC 4696 leads EMD SD70MAC 3934 under Highway 58 in Belton, Mo. on April 11, 2010. Photo by Kevin EuDaly.

Report: Kansas City Southern Sale In the Works

By Railfan & Railroad Staff

KANSAS CITY — Two private equity firms have officially made an offer to acquire Kansas City Southern, Reuters reported Wednesday. Word of a potential offer came two months after rumors first began circulating that Blackstone Group Inc. and Global Infrastructure Partners had been working with banks to finance a deal worth $21 billion. 

Details of the bid were closely guarded and no one would speak on the record about a potential deal, the news agency reported. Sources close to the deal said that KCS was pushing for more money. 

When news of a potential sale first broke on July 31, KCS stock jumped 14 percent in just 15 minutes. On Wednesday, when rumors began to circulate on Wall Street again, the railroad’s value again increased. 

Although KCS is the smallest of North America’s seven Class One railroads, it is the only one with a significant presence in Mexico, making it a particularly fruitful target for investors or other railroads. 

This article was posted on: September 3, 2020