CSX Acquisition of Pan Am Railways

oibu wrote: ↑Wed Jul 01, 2020 8:49 am Is there any source for this claim other than Trains? All the other (non railfan) media I see on the topic just cites Trains, and no other industry or government officials seem to know anything either way. I'm not going to take it too seriously just yet if the only source making the claim is a railfan publication (no disrespect intended), and so far I don't see any media with a more direct source other than citing a secondary source.

Also, "everything is for sale at the right price" even when it's not. So is this a "fire sale, everything MUST go!" or is this just "eh.... meh.... maybe I'll let word slip out that it's for sale and just see if I get any real good offers and then think about whether any of them are too good to refuse.... or not". I'll believe the company is sold when the transaction is complete. A privately held company sale could easily not happen even if the owner showed up with pen in hand if they decide at the last minute not to sign whereas a class I sale is probably happening if a primary source says it is so. Even if "totally true" this could be nothing more than the guy with a Shelby Cobra with 5k miles in the barn that hasn't seen the light of day in 30 years who might sell it if someone showed up willing to pay the right price (all cash, of course). Mellon could still be annoyed over the tunnel issues this month and then have something go his way next month and just say "how silly I was to want to get out... sh*t happens, but I'm over it now".

My company (private) has been working on acquiring another (private) for half of a year. There isn't going to be one person told outside of the company besides debtors under NDA until it's official. That is just how it works. This isn't a public buyout.

That said, from what little I have been able to ascertain, it is legit, and the only two Class Is showing serious interest are Canadian.

The only two to report on this are Trains and Railway Age.

newpylong wrote: ↑Wed Jul 01, 2020 11:31 am That said, from what little I have been able to ascertain, it is legit, and the only two Class Is showing serious interest are Canadian.

Do you know if they are interested in the whole thing (Ayer north) or certain parts (Portland north)?
Just curious.

From New Hampshire Business Review:

New Hampshire Business Review wrote:Shelley Winters, administrator of the Bureau of Rails and Transit of the New Hampshire Department of Transportation, said that she was not aware that Pan Am was for sale and could not comment beyond saying that once a sale closed the bureau would enter a partnership with the new owner.

Link: https://www.nhbr.com/pan-am-railways-goes-up-for-sale/

Safetee wrote: ↑Wed Jul 01, 2020 10:49 am i have my money on Iowa pacific.

Don't put it past Ed Ellis.

Thinking a bit about this Canadian aspect, CP already has rights to Machanicville so this would give them a massive loop completely surrounding New England. Opens up all kinds of possibilities I would think.

Also thinking about what happens to some of the branch lines if a class 1 takes over. Would CP / NS / CN be interested in operating the rumford, Concord or Portsmouth branches, or would those be divested to other shortlines? I could see New England Southern taking over Concord-Nashua or WATCO taking over operations on the Rumford branch.

My company (private) has been working on acquiring another (private) for half of a year. There isn't going to be one person told outside of the company besides debtors under NDA until it's official. That is just how it works. This isn't a public buyout.

That said, from what little I have been able to ascertain, it is legit, and the only two Class Is showing serious interest are Canadian.

Agreed, that's pretty much what I said re: it's all speculation until it happens since it's a private closely held company that can pretty much do or not do what it wants, or change it's mind, at the drop of a hat. Interesting what you say re: the potential interested parties, but then again with the circular caveat that none of this might exist or mean anything anyway "unless or until it does".

Cosakita18 wrote: ↑Wed Jul 01, 2020 1:07 pm I could see New England Southern taking over Concord-Nashua

I think you mean the Merrimack & Grafton, as NEGS is no longer an existing operator as of this week. If all comes to fruition, they may operate there anyway before the end of the year, wouldn't surprise me to see them pick off those few customers along the way down.

Vermont Railway buys Portland north reactivates the Mountain Division and the Northern to connect their network.

I'm sorry I couldn't help myself

I'm a bit confused. If you look at the CP website map, it shows that they already go to Ayer? Did I miss something here?
Now it's even a smaller gap to fill between Ayer and various connections in Maine.

As mentioned by Newpy these types of deals take time..... I heard CN was the lot winner actually and that it's being inked up now.

The other thing I'd say too for those who don't think it's real still, now that the story has 'hit the media' (it's now being circulated in news publications alongside industry ones) there has been no denial of this from Pan Am. Usually silence under these circumstances or lack of a denial only supports the case.

Regarding CP and their commercial rights -- they retained some commercial rights from the way back days when they were a key partner with Guilford and had a greater ownership in the D&H lines. Remember who started intermodal at Ayer... oh it was CP and Guilford. Some of the grain has actually come in via CP commercial rights, essentially they can quote through rates as a single carrier directly to customers to Ayer and the other areas they have rights (VRS/NECR Green Mt Gateway, MNR, NBSR for instance where they can quote directly those stations as a single carrier basically).

CN9634 wrote: ↑Wed Jul 01, 2020 4:05 pm ...there has been no denial of this from Pan Am. Usually silence under these circumstances or lack of a denial only supports the case.

I was thinking the same thing. BMO also did not deny being chosen to handle the sale when asked about it by the media.

And speaking of BMO... is there any significance to PAR's choice of BMO (Bank of Montreal) to handle the sale? For instance, would that signal that they were hoping for or expecting a Canadian buyer?

CN9634 wrote: ↑Wed Jul 01, 2020 4:05 pm As mentioned by Newpy these types of deals take time..... I heard CN was the lot winner actually and that it's being inked up now.

CN seems like the most disconnected illogical suitor on the short list.

Does CN have any trackage rights in Vermont beyond East Alburg?

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