Blackstone Group, GIP make offer on railroad operator Kansas City Southern
The Blackstone Group and Global Infrastructure Partners have made a second offer to buy Kansas City Southern (NYSE: KSU), as first reported by the Wall Street Journal. No word yet on price, but any accepted deal expected to be worth north of $20 billion.
Why it matters: Kansas City Southern is one of North America's largest freight railroads, with a major share of traffic between the U.S. and Mexico.
- Market reax: Kansas City Southern stock rose more than 4% on the news, giving it a current market cap of around $18.3 billion.
- The bottom line: "Kansas City Southern is in the midst of implementing a new operating plan that calls for running fewer, longer trains on a tighter schedule. The overhaul will require fewer locomotives and railcars and has boosted the company’s profits and shares." — Cara Lombardo & Miriam Gottfried, WSJ