Foster will be flush with cash. They received a great price. Debt reduction first, but bolt on acquisitions second?
Canadian Pacific Railway to buy DM&E for $1.48 bln - L.B. Foster
Wed Sep 5, 2007 9:59AM EDT
Sept 5 (Reuters) - Canadian Pacific Railway Ltd (CP.TO: Quote, Profile, Research) has agreed to buy Dakota Minnesota and Eastern Railroad Corp (DM&E) for $1.48 billion in cash and future contingent payments of up to $1 billion, L.B. Foster Co (FSTR.O: Quote, Profile, Research) said.
L.B. Foster, which holds a minority equity interest in DM&E, said it will receive about $151.5 million, or $14.24 per share, at the closing of the deal.
L.B. Foster, a manufacturer of products for the rail, construction, utility and energy markets, said it will use the proceeds from the deal to pay certain debt, among others. (Reporting by Tenzin Pema in Bangalore)
reuters.com |
