RailAmerica pulls out of New Zealand deal
RailAmerica, which operates 49 short line and regional railroads in the United States, Canada, Australia and Chile, said it would not pursue its previously announced proposed tender offer for the equity securities of Tranz Rail Holdings Ltd.
Last week Boca Raton, Fla.-based RailAmerica said it planned to offer $90 million in cash for Tranz Rail, New Zealand's sole freight rail provider. The company now says it doesn't think it can earn enough profit after reviewing Tranz Rail's business model and financial structure.