Union Pacific reached out to CSX only after exclusivity with Norfolk Southern: Sources

Market Dynamics & Potential Deals - CSX shares experienced a 5% decrease following reports that Berkshire Hathaway is not currently interested in acquiring a railroad [2] - Prior to this, CSX shares had already fallen by over 3% due to the announcement of a partnership between BNSF and CSX, aiming to offer transcontinental rail line benefits through cooperation [2] - An activist investor, Kora, is pressuring CSX to engage in discussions with BNSF and Canadian Pacific regarding potential deals [4] - Union Pacific (UNP) did not approach CSX until after securing an exclusive agreement with Norfolk Southern [5] - Berkshire Hathaway clarified it is not currently in the market to buy a railroad [3] Regulatory & Industry Landscape - The Trump administration, through the National Surface Transportation Board, may influence potential railroad mergers [9] - The Commerce Secretary previously stated he would stay out of decisions regarding transcontinental railroad mergers, emphasizing the potential benefits of easier rail freight transport across the country [9][10] - A major joint railroad purchase hasn't occurred since 1999, highlighting concerns about the consolidation of railroads in the US [7][8] Berkshire Hathaway's Position - Berkshire Hathaway, through BNSF, possesses substantial resources to facilitate transcontinental railroad operations through cooperation rather than outright acquisitions [11] - Warren Buffett indicated a willingness to commit capital to railroad deals that are deemed sensible [13] - A significantly lower stock price for CSX could potentially alter Berkshire Hathaway's interest in a deal [16] CSX Stock Performance - CSX shares had increased by over 8% since July, driven by speculation that UNP was seeking a merger partner [14] - The stock's rise was based on anticipation of a potential offer, but potential partners are currently expressing disinterest [15]