Billionaire investor Warren Buffet today publicly denied that his company has engaged a major investment bank to explore the acquisition of a rival Class I railroad.
Semafor, an online publication, reported Monday evening that BNSF has engaged Goldman Sachs in the wake of Union Pacific (NYSE: UNP) working with Morgan Stanley regarding a potential merger with Norfolk Southern (NYSE: NSC). Both reports cited people familiar with the matter. The railroads and investment banks declined to comment.
But Buffett, who serves as chairman and chief executive of BNSF parent Berkshire Hathaway Tuesday on CNBC denied that the railroad is working with Goldman Sachs regarding a potential acquisition of CSX. The latter had no comment on the reports.
The initial reports said it was not clear whether BNSF was interested in CSX (NASDAQ: CSX) or Norfolk Southern. NS is reportedly the target of Union Pacific, and the two railroads have been in merger talks since the first quarter, the Associated Press reported last week.
The publicly-held Class I railroads begin to report second quarter earnings this week. CSX reports July 23, UP on July 24, and NS, July 29.
There has not been a big merger involving the major Class I systems since the Surface Transportation Board adopted tighter merger review regulations in 2001.
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