Over on another forum someone posted the text of an article that apparently appeared in the Jan 8 issue of Association of the Transportation Law Professionals' Association Highlights postulating that UP would try to gain control of KCSM. Personally, while I feel it's far fetched, I thought the KCS readers here might be interested in seeing the article. I don't have a link to the publication. But you can read the entire article here: http://www.trains.com/TRC/CS/forums/1006380/ShowPost.aspx At least you can until they take it down for copying / posting the entire text. You can see a short excerpt from the article, plus a 25+ post thread discussing it here: http://www.trains.com/TRC/CS/forums/1/1006540/ShowPost.aspx#1006540 The guy with the second post in that thread says he can forward the full article to anyone interested. (fyi, I'm going to cross post this on the UP board.) Regards Ed
Leverage it?? KCS has no intention of giving it up. The gist of the article's argument is that UP would buy KCS in order to get it. Ready for that? The other problem is that UP already owns 26% of Ferromex. No way the Mexican Govt will allow one US road to own significant portions of the two biggest sections of the privatized rail system down here. So if you believe the article's premise, (although it avoids the issue), you'd have to assume that UP was willing to divest themselves of their stake in the larger Ferromex, purchase KCS, fight the STB, all to get the smaller KCSM. Seems like it would be more cost effective to sink all that cash and effort into upgrading Ferromex the way KCS has been upgrading KCSM. But hey, what do I know? Regards Ed
What I was asking, is about KCS/KCSdeM being in a position of financial weakness. Which would invite such a takeover attempt. mg: Boxcab E50
As far as I know, KCS is not in a position of being financially weak. UP had their chance to get their hooks into the Mexican railways and didn't go for it. Now they only want it because KCS has become a major competitor for business south of the border, business that UP isn't getting.
Uh, not quite. UP already owns 26% of Ferromex, the largest railroad (in terms of route miles) in Mexico. Regards Ed
In terms of financial standing I am a KCS stock holder and it is my understanding that KCS carries a large amount of Debt, one reason is specifically to make it less desirable for a takeover/buyout.
