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it seems that if there were to be a merger it would run west /east or canada /east. why would up or bnsf want csx or ns? the economies of scale must already be present in companies of this size. so this would not be a compelling concern. <br />two other motivators are asset / market fit and preemptive blocking of a competitor's merger. <br />any synergistic benefit to a post merger mega railroad would probably be greatly watered down by the government regulators who would require that the merged entity grant consessions and divestitures of properties which would help competitors survive in the post merger environment, ie., up/sp trackage consessions to ksc. this would dampen any bottom line benefit of a takeover and would reduce the premium being bid into the value of a takeover offer. if there is no premium in the bid then the targeted company has no incentive to allow itself to be acquired. <br />correspondingly, since a predator can see that any advantage he may obtain will be regulated away or priced into the value of a bid he will understand that the same regulatory and bid value hurdles apply to his competitor. this should make the need of a preemptive takeover a much less valuable strategy. <br />i would like to ask again: what specific value do these companies see in eachother that would make the legal and banking expense of a takeover program worthwhile?
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