On another site, members are already dividing up how KCS will sold off.
Jeff
KCS under Pat Ottensmeyer has been a fairly customer focused railroad. When a hedge fund becomes involved, you can pretty safely assume their interest will be to rake as much cash as quickly as possible and the customers be damned.
As noted over on TRAINS Newswire; rail customers are already having renewed service issues with several Class 1's whose focus is pleasing Wall Street rather than moving freight. Having Blackstone running the hen house will almost certainly not do anything to make life better for KCS customers.
JPS1 Juniata Man Regardless; it's bad news for KCS customers. Why?
Juniata Man Regardless; it's bad news for KCS customers.
Why?
rdamonI thought they were landscapers.. :) Didn't they say the same about BNSF?
Didn't they say the same about BNSF?
Berkshire Hathaway is not a short term - take the profits and run type investor. They are in the companies they invest in for the long term.
Never too old to have a happy childhood!
I thought they were landscapers.. :)
JPS1Why?
Amongst the terms used to describe Blackstone is "hedge fund."
Hedge funds tend to be described as: "a limited partnership of investors that uses high risk methods, such as investing with borrowed money, in hopes of realizing large capital gains.
Larry Resident Microferroequinologist (at least at my house) Everyone goes home; Safety begins with you My Opinion. Standard Disclaimers Apply. No Expiration Date Come ride the rails with me! There's one thing about humility - the moment you think you've got it, you've lost it...
Regardless; it's bad news for KCS customers.
I suppose it was only a matter of time...
I can't get the whole story out of the Wall Street Journal site but Blackstone Group (along with other investors) has now launched a formal takeover bid of Kansas City Southern after their initial attempt back in late July was rebuffed. https://www.wsj.com/articles/blackstone-gip-make-takeover-bid-for-kansas-city-southern-11599073239?mod=hp_lista_pos1
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