Short-line railroad operator RailAmerica, Inc. said in response to market rumours today, that it Board of Directors is considering a potential sale of the company. In connection with the evaluation, the company has begun preliminary discussions with third parties, sending its shares 11 percent higher in extended trade.
RailAmerica said in a statement that there could be no assurances that any agreement will be reached with respect to a transaction or that a transaction will be accomplished.
The company, whose majority owner is Fortress Investment Group, has retained the services of Deutsche Bank Securities Inc as its financial adviser and to assist with the evaluation of strategic alternatives.
Fortress acquired RailAmerica in 2007 and re-listed the company on the New York Stock Exchange in 2009.
RailAmerica, Inc. owns and operates short-line and regional freight railroads in North America, operating a portfolio of 45 individual railroads with approximately 7,500 miles of track in 28 U.S. states and three Canadian provinces.
Shares of Jacksonville, Florida-based RailAmerica, which have risen 48 percent this year, rose to $24.49 in trading after the bell, and closed at $22.13 on Tuesday on the New York Stock Exchange.
For more information on RailAmerica, see the latest research: RailAmerica Reports
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