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Rail News: Financials

Taking stock: GWI's Fuller enters into Variable Prepaid Forward transaction

On March 9, Genesee & Wyoming Inc. (GWI) announced that Chairman and Chief Executive Officer Mortimer Fuller III had entered into a Variable Prepaid Forward (VPF) transaction with Credit Suisse First Boston for about 150,000 GWI shares — or about 10 percent of the GWI shares Fuller beneficially owns.

The VPF transaction essentially is a tax deferred forward sale of GWI shares, with Fuller retaining a portion of the future upside interest if GWI's stock price increases during the next three years.

"Mr. Fuller chose a VPF transaction in order to demonstrate his continued confidence in the company while permitting him to diversify and monetize a portion of his investment at the same time," according to a prepared statement.

GWI owns or retains interest in more than 20 regionals and short lines in the United States, Canada, Mexico, Bolivia and Australia.

Contact Progressive Railroading editorial staff.

More News from 3/9/2004