Wednesday, May 23, 2012

RailAmerica discusses possible sale

Written by  Luther S. Miller, Senior Consulting Editor
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RailAmerica Inc., which owns 45 small railroads that operate approximately 7,500 miles of track in North America, disclosed late Tuesday that it is considering selling the company and has entered into talks with third parties. Deutsche Bank Securities Inc. is its financial adviser.

The company's majority owner is New York-based Fortress Investment Group, which acquired RailAmerica five years ago. Its shares, which have risen steadily this year, rose more than 19% after the close of the stock market Tuesday.

RailAmerica stressed in a statement that there was no assurance a sale would result from its preliminary talks.

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