Media Kit » Try RailPrime™ Today! »
Progressive Railroading
Newsletter Sign Up
Stay updated on news, articles and information for the rail industry

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

View Current Digital Issue »


Rail News Home Rail Industry Trends


Rail News: Rail Industry Trends

RailAmerica drops bid for Tranz Rail


After only a week, RailAmerica Inc. has changed course in its pursuit of Tranz Rail Holding Ltd. On May 22, the short-line holding company announced it no longer plans to acquire the equity securities of New Zealand's 2,400-mile multi-modal freight transportation company.

RailAmerica's $90 million cash tender offer was predicated on "a satisfactory due-diligence investigation of Tranz Rail," according to a prepared statement.

"As a result of our investigation, we have decided to withdraw our tender offer notice and not to commence any tender offer for Tranz Rail," said Gary Marino, RailAmerica chairman, president and chief executive officer. "We have determined that, under current circumstances, the proposed acquisition does not represent the opportunity for enhanced shareholder value that we had originally contemplated."

Under RailAmerica's proposed bid submitted May 15, a new subsidiary would have offered 43 cents for each Tranz Rail share, and assumed or refinanced about $135 million of Tranz Rail’s lease obligations and outstanding debt.

Contact Progressive Railroading editorial staff.

More News from 5/22/2003