KCS being bought out by UP?????

[beast5420]

heard this rumor over on the yahoo groups boards. anybody know anything about this????

[OC Engineer JD]

I would look at more the CN getting the CSXT.

[friscobob]

The version I heard had BNSF as the purchaser.

The key word here is "RUMOR". I'm not believing anything until I see the STB announcement.

[beast5420]

it's amazing how fast some of this stuff can get. because of nafta trade i think it would be hard for the stb to ok it.

[CP&E 3207]

It would be too hard (if even possible ) for any railroad to purchase any other Class 1 and some class 2 railroads.

[friscobob]

This merger discussion is taking place over on the KCSNotes group in Yahoo!, and the official word on the merger from KCS World Headquarters is NO.

To be honest, some of KCS' routes would make nice additions, but Mike Haverty's primary job right now is to make the NAFTA Railway a reality, and get more control over TFM.

A more interesting rumor concerning KCS is the impending acquisition of more SD60s coming off lease from another railroad. No idea what they are, or this is more sandhouse gossip.

[beast5420]

got my newest edition of trains mag last night. yet another bunch of speculation about mergers..... just hope KCS stays KCS, would hate to see them disapper under someone else's banner....

beast

[foamer]

I have not heard anything here in K.C . But
I do know that we've had several higher brass
from both the UP and the BNSF high rail south and east out of K.C in just the last month or so, not that it's anything new but it is becoming more frequent. I have heard that the KCS is looking for more power, but no word on where it's coming from.

[BoxcabE50]

I would hope that KCS is in fairly decent financial shape right now. After their recent dealings in Texas, and Mexico, they should be competitive with UP for NAFTA stuff.

I also wonder about any future mergers at all. That perhaps we are at a point where the government will keep things status quo. If mergers in the past decade are any indicator, the mess that comes afterward just isn't worth it. We're at a point where companies are so big, they are almost dysfunctional.

:rolleyes:

Boxcab E50

[beast5420]

boxcab,
i hope you're right, we have too few railroads as it is. i know the tfm had to have depleted the cash reserves, i like what harvety has planned. i know it'll never happen, but it would be funny for kcs to buy out cn. that would give a real nafta rail!! :D maybe kcs can look at expanding southward into central america, esp. with this cafta thing congress is pondering....

beast

[YoHo]

If anything, I see a breakup coming. Maybe of UP if they can't get their act together.

[BoxcabE50]

Originally posted by YoHo:
If anything, I see a breakup coming. Maybe of UP if they can't get their act together. Hmmm. That could be an interesting topic for speculation! And even guessing what, if any, ex-UP trackage a company such as KCS could gain.

graemlins/headscratch.gif

Boxcab E50

[MRL]

Wow, KCS could be the next super railroad..

[beast5420]

some of the up trackage through eastern oklahoma and maybe arkansas would give them multiple routes north from the la-tx area. could be interesting, but i doubt up breaks up though..... some interesting pondering to pass the afternoon..... :D

[YoHo]

I doubt it too, but it certainly is interesting thinking. They have been having trouble lately.

It's also just desserts as it were.

Anyway, I could see KCS grabbing the Sunset route and becoming a transcon. That would seem to make the most Geographic sense.

Some reorganized UP would keep the Overland route and probably the route to Portland.

The North-South California and Oregon SP stuff could possibly go to to another company.

[friscobob]

Picked up the July issue of Trains, which contains an article on possible mergers. IMO, it's worth reading. It also has a list of possible merger combinations.

Before you go further with what-ifs on a KCS merger, check this out- it's food for thought.

[beast5420]

i finally got my copy of it read. what's your thoughts on the implications/possiblities of the trains article friscobob?

beast

[Doug A.]

My opinion is that BNSF won't let KCS go to UP. (in the sense that they will do everything in their power to prevent it) I'm not necessarily saying BNSF will buy KCS, but they have too much riding on their relationship with KCS to let this happen uncontested.

My guess is that within 3 years you will having the following:
BNSF/KCS/NS
UP/CSX
and of course the ensuing "trackage rights/line selloff polka" to even the playing field a bit.

[BoxcabE50]

Originally posted by Doug A.:
My guess is that within 3 years you will having the following:
BNSF/KCS/NS
UP/CSX
and of course the ensuing "trackage rights/line selloff polka" to even the playing field a bit. Am not certain that anyone would take on BNSF as a merger partner, without some serious thought. They are not as strong as they appear. And could drag down their new partners.

:(

Boxcab E50

[Doug A.]

Originally posted by BoxcabE50:
</font><blockquote>quote:</font><hr />Originally posted by Doug A.:
My guess is that within 3 years you will having the following:
BNSF/KCS/NS
UP/CSX
and of course the ensuing "trackage rights/line selloff polka" to even the playing field a bit. Am not certain that anyone would take on BNSF as a merger partner, without some serious thought. They are not as strong as they appear. And could drag down their new partners.

:(

Boxcab E50 </font>[/QUOTE]Strong or not, when the dominos start falling, SOMEBODY will have to partner with BNSF to survive, simply from a geographical standpoint. If UP-CSX happens, NS will not have the luxury of "being proud"...they're just going to grab the last remaining parachute.

[YoHo]

The question isn't how strong BNSF is, but how strong it is....compared to UP.

[UPNSP]

Here is how I see it

UP+KCS+CSXT=UP:thumbs_up:
BNSF+NS=BNSF:thumbs_up: