Overview

• According to people familiar with the matter, BNSF has engaged Goldman Sachs to weigh an acquisition of Norfolk Southern or CSX, though the precise target remains undecided.
• Spokespeople for both BNSF and Goldman Sachs declined to comment on the exploratory talks.
• Warren Buffett told CNBC that no one from Goldman spoke with him or Greg Abel and that he would not seek advice from external bankers.
• The move follows Union Pacific’s bid for Norfolk Southern and represents a direct countermove in the race to establish a coast-to-coast rail network.
• Any potential megamerger would require a 16-to-22-month Surface Transportation Board review and faces significant antitrust scrutiny.