IMO, it’s hard to see Buffett bidding for CSX in this type of situation. I’m not sure what scale advantages UNP could realize by combining with one of the east coast railroads that would negatively impact BNSF and force management to seek its own east coast merger partner. Right now, I’d like to see BNSF focus entirely on narrowing the performance gap with UNP and I’d worry about a merger being a huge distraction, as well as being expensive.
I don't really know enough about the potential benefits of going transcontinental versus the large price tag CSX would undoubtedly fetch. But it does seem a bit un-Buffett-like to get pushed into a huge acquisition as a response to a competitor's move.
IMO, it’s hard to see Buffett bidding for CSX in this type of situation. I’m not sure what scale advantages UNP could realize by combining with one of the east coast railroads that would negatively impact BNSF and force management to seek its own east coast merger partner. Right now, I’d like to see BNSF focus entirely on narrowing the performance gap with UNP and I’d worry about a merger being a huge distraction, as well as being expensive.
I don't really know enough about the potential benefits of going transcontinental versus the large price tag CSX would undoubtedly fetch. But it does seem a bit un-Buffett-like to get pushed into a huge acquisition as a response to a competitor's move.