From the TRAINS Newswire: RailAmerica withdraws offer for TranzRail BOCA RATON, Fla. – New Zealand's struggling rail operator TranzRail was hit by more bad news Thursday when U.S. shortline holding company RailAmerica withdrew its cash offer for the railway barely a week after it started examining its books. RailAmerica, based in Boca Raton, Fla., last week offered NZ$0.75 for each TranzRail share, valuing the company at NZ$158 million ($92 million U.S.). RailAmerica's cash offer came at a time when TranzRail was restructuring its balance sheet and selling off a spate of assets. TranzRail's distress has also been a source of concern for the New Zealand government, which had earlier said that it was looking at options with the operator, including buying back its rail network. RailAmerica's progress with its bid hinged upon successful completion of due diligence or examination of its books. "We have determined that, under current circumstances, the proposed acquisition does not represent the opportunity for enhanced shareholder value that we had originally contemplated," said Gary Marino, RailAmerica’s chairman and CEO.
When I hear of these investments into companies outside of North America, I wonder. So many have had financial troubles. Many other nations seem to have different operational, and management methods. How many of these purchases actually succeed in turning a solid and steady profit? I believe I've read elsewhere a couple of times that this particular example has been having some difficulties for a while now. Boxcab E50
