By William C. Vantuono, Editor-in-Chief, Railway Age Magazine; July 31, 2020
Two private equity firms are considering a takeover bid for Kansas City Southern, according to a report based on information from anonymous sources in the Wall Street Journal posted late afternoon on July 31, just before the closing bell on Wall Street.
Blackstone Group Inc. and Global Infrastructure Partners are considering a joint bid “that could be worth more than $21 billion and mark a big bet on U.S.-Mexico trade,” the WSJ said. They are “together exploring a potential deal and speaking to banks including Citigroup Inc. about financing, according to people familiar with the matter. There is no guarantee they will proceed with a formal offer or that Kansas City Southern would be receptive. Assembling the roughly $15 billion equity check that could be required for a deal of that size would pose significant hurdles for Blackstone and GIP, which are investing out of $14 billion and $22 billion infrastructure funds, respectively.”