Topic: How To Invest

Spinoffs, Takeovers and Special Situations Hotline – Friday, July 12, 2019

Article Excerpt

GENESEE & WYOMING INC., $109.60, symbol GWR on New York, owns and operates 120 railroads across North America, Australia, Europe and the U.K. In March 2019, Genesee announced that it was exploring strategic options, including the sale of all or part of the business. One of the interested buyers was Brookfield Infrastructure Partners (symbol BIP.UN on Toronto). It’s the infrastructure subsidiary of Brookfield Asset Management (symbol BAM.A on Toronto). On July 1, 2019, Brookfield Infrastructure announced that, along with its partner GIC, Singapore’s sovereign wealth fund, it would pay $8.4 billion for Genesee & Wyoming. Brookfield Infrastructure offer is for $112 a share in cash. That’s up almost 18% from when we recommended the company as a buy at $95.22 in our May 31, 2019, Spinoffs, Takeovers & Special Situations Hotline. The deal is expected to close by the end of 2019 or early in 2020. OUR RECOMMENDATION: Genesee & Wyoming is now a hold. Genesee & Wyoming recent coverage: Hotline for May 31, 2019 KELLOGG COMPANY,…

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