P. M. BRIEFING : Illinois Central Accepts Takeover
CHICAGO — Illinois Central Transportation Co., the Midwest railroad company, today agreed to be acquired by New York-based Prospect Group Inc. in a transaction valued at around $435 million.
Illinois Central said its decision to accept the $20-per-share offer followed “a careful investigation of the possibility of alternatives to the original Prospect offer, including discussions with third parties.”
Prospect made its bid in January, and IC had since held talks with other companies, possibly in an attempt to find a higher bid. There was speculation that Archer-Daniels-Midland Co., the world’s largest grain processor, which ships in IC cars, might make a bid for the company.
IC shares fell 87.5 cents on the New York Stock Exchange to $19.75.
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