BNSF Railway has not engaged with investment bankers about a possible railroad merger, Berkshire Hathaway Chairman and CEO Warren Buffett told CNBC today.
Yesterday Semafor and Reuters reported, citing people familiar with the matter, that BNSF had hired Goldman Sachs to advise the railroad about mergers.
But Buffett said neither he nor Greg Abel, the Berkshire executive who oversees the railroad, has spoken with Goldman Sachs or any other investment bank. And Buffett said the company would not seek advice from bankers because they are predisposed in favor of making deals.
Speculation about a potential merger involving two of the big U.S. Class I railroads has been building for the past few months, and multiple news media outlets reported last week that Union Pacific and Norfolk Southern are involved in early merger talks.
In May a BNSF spokesman told Trains that the railroad doesn’t see a catalyst for a transcontinental merger.
“For a merger to happen in today’s environment, our customers, policymakers, and the communities we serve would need to indicate that they want to see additional mergers,” the railroad said. “We view it as unlikely as we aren’t hearing from our customers or the other constituencies that they want to see further consolidation in the industry at this point in time.”
So who at Goldman Sachs leaked the false information hoping to get an inside track?
I am with Warren, who would allow the short termers inside the walls of the company just to see how much fat they can scrape off the bone and keep for themselves?
I think I have said this a few times. BNSF is not interested in a merger. They have their hands full taking care of J B Hunt almost to the exclusion of everything else… Their choice…
Uncle Warren doesn’t need investment advisors. He will just cut a check when the time comes.