Company News

BUZZ- Genesee & Wyoming Inc eyes record high gain on $8.4 bln buyout deal

** Freight railroads operator’s shares soar 8.3% to $108.30 premarket; stock on pace to open at a record high, after a $8.4 bln buyout deal including debt

** Toronto-based Brookfield Asset Management Inc and Singaporean sovereign wealth fund GIC offer $112 per GWR share, representing a premium of 12% to stock’s last close

** The deal comes a day after Reuters reported it on Sunday, citing sources

** GWR’s decision to sell itself comes after a string of acquisitions of short-line railroads that made maintenance of its expanding network more expensive

** The deal also comes amid weakness in some of core North American markets for transport of steam coal, agricultural products

** GWR has a market cap of $5.7 bln per Refinitiv data; analysts current rating on stock is “hold”

** Genesee has risen 35% this year (Reporting by Amy Caren Daniel in Bengaluru)