Reuters reported today that Rail America headquartered her in Jacksonville has been purchased by Genesee & Wyoming Inc. for $1.39 billion in cash to create the biggest regional railroad operator in the United States and is hoping to benefit from an economic recovery.
Genesee offered $27.50 per share for RailAmerica, a premium of about 11 percent to the stocks Friday close. The stock had already risen two-thirds this year in anticipation of a bid. The shares were up 9.7% percent at $27.22 in this mornings trading. RailAmerica is the former Florida East Coast Rail Road that was headquartered in St. Augustine before moving its headquarters here to Jacksonville after Fortress acquired it.
RailAmerica has agreed to a 30 day period in which it can end its merger agreement with Genesee, should it receive a better offer from another party, for a termination fee of $49 million. If Genesee fails to execute the deal for certain reasons, it will have to pay RailAmerica $135 million.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.