US Markets

Private equity firms considering takeover bid for Kansas City Southern - WSJ

Credit: REUTERS/EDGARD GARRIDO

A group of buyout investors are considering a takeover bid for Kansas City Southern for a deal value of about $20 billion, the Wall Street Journal reported on Friday, citing people familiar with the matter.

Adds background

July 31 (Reuters) - A group of buyout investors are considering a takeover bid for Kansas City Southern KSU.N for a deal value of about $20 billion, the Wall Street Journal reported on Friday, citing people familiar with the matter.

Blackstone Group Inc's BX.N infrastructure arm and Global Infrastructure Partners are together exploring a deal and speaking to banks about financing, the report said.

Earlier this month, the cross-border railroad between the United States and Mexico said its network experienced a rapid decline in volumes followed by an unprecedented rebound that has forced the company to optimize its cost structure.

Kansas City had also announced several organizational changes effective July 1.

The WSJ report added that there is no guarantee the private equity companies will proceed with a formal offer or that Kansas City Southern would be receptive.

Kansas City Southern, which has a market value of more than $16 billion, was not immediately available for comment on the WSJ report.

(Reporting by Arundhati Sarkar in Bengaluru; Editing by Maju Samuel)

((Arundhati.Sarkar@thomsonreuters.com; twitter.com/Arundhati_05; +1 646 223 8780 Ext: 2776;))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

BX

Latest Markets Videos

Reuters

Reuters, the news and media division of Thomson Reuters, is the world’s largest international multimedia news provider reaching more than one billion people every day. Reuters provides trusted business, financial, national, and international news to professionals via Thomson Reuters desktops, the world's media organizations, and directly to consumers at Reuters.com and via Reuters TV.

Learn More