Remarks
Not Even a $23 Billion Buyout Is Rich Enough for a Railroad Anymore
Kansas City Southern shareholders aren’t worried about a reported takeover bid walking.
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Even in the midst of a crisis, railroads don’t come cheap.
Kansas City Southern rejected a $208-a-share offer from Blackstone Group Inc. and Global Infrastructure Partners (GIP) that would have valued it at almost $23 billion, including debt, according to the Wall Street Journal. The bid prices Kansas City Southern as if the pandemic—and the associated plunge in rail volumes—had never happened: It’s a 17% premium over the stock’s pre-lockdown high in February. The two sides aren’t in discussions, the Journal said.