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Non-Tech : Railroad industry: Freight railroads/rail supply companies

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To: Tom Murray who wrote (5)9/27/1998 4:08:00 AM
From: 246810  Read Replies (1) of 13
 
Once the financial spinoff has been accomplished, KSU (which will then be a "pure" transportation company) proposes to do an equity offering in order to reduce the debt-equity ratio.

Can anyone tell me the reason to reduce debt. Interest rates are low, the stock price is battered and p/e ratio is still up in the sky (150).
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