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mikeski
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March 29 2009, 12:50 PM
Post #1
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- Posts:
- 690
- Group:
- Members
- Member
- #13
- Joined:
- August 14, 2007
- Favorite Railroad
- Providence & Worcester
- Favorite Locomotive
- MLW M420, EMD RS1375, GE B40-8, EMD GP38, EMD F40PH
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- Quote:
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WORCESTER, Mass.--(Business Wire)--Providence and Worcester Railroad Company ("P&W"; AMEX: PWX) today announced that pursuant to certain agreements between the Company and GATX Corporation ("GATX"; NYSE: GMT), GATX has purchased 239,523 newly-issued shares of P&W's common stock, or approximately five percent (5%) of its outstanding common stock, for $5,509,029.00. Under the terms of the Stock Purchase Agreement, GATX will be entitled to one seat on P&W's Board of Directors.
In addition, GATX has become P&W's exclusive provider of substantially all of P&W's rail car needs. As part of these arrangements, P&W and GATX have entered into various transactions covering approximately 400 railcars of three major types.
P. Scott Conti, P&W's President, said, "We are excited about GATX's involvement with P&W and, particularly, the potential growth opportunities for the two organizations through this unique partnership."
P&W is a regional freight railroad operating in the states of Massachusetts, Rhode Island, Connecticut and New York. P&W transports a wide variety of commodities, including automobiles, construction aggregate, iron and steel products, chemicals, lumber, scrap metals, plastic resins, cement, coal, construction and demolition debris, processed foods and edible foodstuffs, such as frozen foods, corn syrup and animal and vegetable oils. By agreement with a private operator, P&W also operates two approved custom-bonded intermodal yards in Worcester, MA, primarily for the movement of container traffic from the Far East destined for points in New England.
This release contains "forward-looking statements" within the meaning of section 21E of the Securities and Exchange Act of 1934, as amended. These forward-looking statements represent the Company's present expectations or beliefs concerning future events. The Company cautions that such statements are necessarily based on certain assumptions which are subject to risks and uncertainties, including, but not limited to, changes in general economic condition, and changing competition which could cause actual results to differ materially from those indicated herein. Further information on these risk factors is included in the Company's filings with the Securities and Exchange Commission.
http://www.reuters.com/article/pressRelease/idUS188863+10-Jan-2008+BW20080110
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