CSX has declined to comment on a Bloomberg report that it has engaged Goldman Sachs to advise it about potential merger options.
Today’s news follows this week’s announcement that Union Pacific (NYSE: UNP) will acquire Norfolk Southern (NYSE: NSC) in an $85 billion deal that would create the first transcontinental freight railroad.
Industry analysts believe the UP-NS combination will put pressure on BNSF Railway and CSX (NASDAQ: CSX) to respond, either through a merger of their own or by BNSF launching a bid for NS. BNSF has declined to comment.
CSX Chief Executive Joe Hinrichs said last week — prior to the UP-NS announcement — that the railroad would not rule out merger talks.
Activist investor Ancora on Wednesday said that CSX could be a merger target if its performance metrics continue to lag the other Class I railroads.
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