Is CSX bought out?

I just talked to a friend and he said another friend of his said CSX is either bought out or getting bought out. Is this true?

I thought both CSX and Norfolk Southern refused to merge with Canadian Pacific.

As far as I know CP never asked CSX.

Nothing concrete going on at the moment, but BNSF and UP could each hook up with NS or CSX to form two coast-to-coast railroads. With coal shipments falling at a rapid route both of the eastern carriers are ripe for a takeover of some kind. Or maybe there will be a Conrail II with the government taking over both NS and CSX. Or CP could force a merger with NS. Or something else could happen. Everything is kind of up in the air.

CSXfoamer1997 said:

I just talked to a friend and he said another friend of his said CSX is either bought out or getting bought out. Is this true?

I thought both CSX and Norfolk Southern refused to merge with Canadian Pacific.

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Your friend needs better information.. It's really bad info..

CCC1007 said:

As far as I know CP never asked CSX.

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CP proposed in October of 2014. Quickly shot down.

This is speaking as a NS employee. I don't want it to happen cause I would be out of a job. On top of that CP's practices of On Duty time is complete BS. Your 12 hours starts as soon as you get to the train. Not when you get to your terminal. But I would like to see it happen in a way as NS stock is nothing but a downfall right now. This time last year it was around $105. a share. Now around $65..

Long term I see that as a buying point. Same with CSX, albeit with deeper reservations on CSX's management style. The yield is over 3% and I believe, in general, sustainable (nobody has a payout ratio over about 45%). That said, I intend to look into buying some shares and/or setting buy triggers.

That being said...CP has been chasing NS and if a buyout happens I'm dumping the shares I have ASAP. This is partly because of how *ahem* well mergers tend to go...but more because I strongly disapprove of Hunter Harrison's style.

Disclosure: I directly own shares in NS and CSX, and I believe I'm the beneficiary of some shares of UP as well. To my best knowledge I neither own nor am the beneficiary of any CN, CP, or KCS shares.

Sell those NS shares. It's going to get lower.

Great, now not a single person that sees this thread can trade NS stock due to insider trading laws.

Acela150 I bet is not on the insider list of NS.

CCC1007 said:

Great, now not a single person that sees this thread can trade NS stock due to insider trading laws.

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You should take a moment to familiarize yourself with the law before saying things like that.

jis said:

Acela150 I bet is not on the insider list of NS.

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Nope.. I recently looked at the stock over the past year. It has dropped about $40-$50 over the past year. Also NS right now is going through major layoffs and an extreme lack of work. For instance. The Conway to Morrisville train. 14G. Would run an extra section at least 3 times a week. Which was 3 extra crews to pay. So some bone head, said Let's put a DPU mid train and make it a 2 mile long train. So that's 3 less crews getting paid. A bunch of greedy people in upper management who only care about their salary.

So if that doesn't say the price is going to drop more, I don't know what does.

Ryan said:

CCC1007 said:

Great, now not a single person that sees this thread can trade NS stock due to insider trading laws.

Click to expand...

You should take a moment to familiarize yourself with the law before saying things like that.

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True. I was tempted to buy stock when I first hired. But I watched it drop and drop. Never bought it.

Owning a lot of stock in the company that is your primary source of income is not the brightest thing to do anyway. I buy ESOP stock in my company mainly to capture the 5% discount and then I get rid of them ASAP to capture the discount and run. Has served me well overall. The only stuff I keep around are the things granted to me for nothing or options grants that are not in the money in a big way and have years to go before expiry.