Why Shares of Kansas City Southern Soared 15.1% in July

Shares of railroad Kansas City Southern (NYSE: KSU) rose 15.1% in July according to data provided by S&P Global Market Intelligence. The move was inspired by a couple of related factors. First, the company reported a good set of second-quarter earnings in the middle of the month. Second, media reports are claiming that private equity companies are interested in bidding for the railroad.

The second-quarter earnings, and the positive trend within them, were previously discussed in an article. To briefly recap:

Meanwhile, the buyout speculation is understandable given that Kansas City Southern is by far the smallest of the listed Class 1 railroads. In addition, it's an attractive strategic asset due to its role in commercially linking the U.S. with Mexico.

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Source Fool.com