One would have thought that in the current pandemic environment that a company such as Kansas City Southern might be wanting to bite the hand off potential bidders. And while its hard ball strategy has so far meant that it has been on the receiving end of a reported $20bn / $208 a share offer, it may be that media reports regarding the situation have been rather too soft on what happens next.
Higher And Higher?
So far we are being guided to the potential for a higher offer for Kansas. However, the reality may be that we have seen the best of any offers for the group, and that a minimum period of 6 months may have to pass before any new round of bidding may take place. This does not of course guarantee there will be a share price drift, as the stock is already discounting the last alleged offer for the group. But it could be that some of the froth of the recent rally is eroded should the penny drop regarding at least a temporary (some months) end of the line to takeover talks.
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