A group of huge buyout traders is contemplating a takeover bid for railroad operator Kansas City Southern KSU 9.68% that may very well be price greater than $21 billion and mark a giant guess on U.S.-Mexico commerce.
Blackstone Group Inc.’s BX -1.88% infrastructure arm and International Infrastructure Companions are collectively exploring a possible deal and talking to banks together with Citigroup Inc. about financing, in response to individuals accustomed to the matter.
There isn’t any assure they are going to proceed with a proper supply or that Kansas Metropolis Southern can be receptive. Assembling the roughly $15 billion fairness verify that may very well be required for a deal of that dimension would pose important hurdles for Blackstone and GIP, that are investing out of $14 billion and $22 billion infrastructure funds, respectively.
If there’s a deal, it could be important. Kansas Metropolis Southern had a market worth of roughly $14 billion Friday afternoon and together with debt, the worth of a bid might exceed $21 billion, a few of the individuals mentioned.