(RailAmerica issued the following news release on May 22.)
BOCA RATON, Fla. — RailAmerica, Inc., the world’s largest operator of short line and regional freight railroads, today announced that it would not pursue its previously announced proposed tender offer for the equity securities of Tranz Rail Holdings Limited (“Tranz Rail”).
As previously indicated, the decision to proceed with an offer was predicated upon a satisfactory due diligence investigation of Tranz Rail.
“As a result of our due diligence investigation, we have decided to withdraw our tender offer notice and not to commence any tender offer for Tranz Rail,” said Gary O. Marino, Chairman, President & CEO of RailAmerica. “We have determined that, under current circumstances, the proposed acquisition does not represent the opportunity for enhanced shareholder value that we had originally contemplated.”
RailAmerica, Inc., is the world’s largest short line and regional railroad operator with 49 railroads operating approximately 12,900 miles in the United States, Canada, Australia and Chile. In Australia and Argentina, an additional 4,300 miles are operated under track access arrangements. The Company is a member of the Russell 2000(R) Index. http://www.railamerica.com