Possible DM&E purchase deal to come in September

DM&E: Second round bids imminent; unclear if financing commitment still in place

by Claudia Montoto and Karen Schwartz in New York, Financial Times

Second round bids for Dakota, Minnesota & Eastern Railroad (DM&E) are understood to be imminent, as the auction for the company continues marching towards a deal despite fragile credit markets. Class 1 railroads and utilities companies, it was said, retain an advantage in the bidding competition over infrastructure and private equity funds, as the performance of rail is significantly up this year.

A deal is likely to be announced in September, it was said.

[...]

Meanwhile, according to an industry source claiming knowledge of the situation, the bidding for DM&E is nearing USD 2bn while potential suitors could back out of the auction because of credit tightness. He said there is a belief that there is not sufficient access to financing to support loans, adding that the process is not unfolding as well as originally thought.

(More here.)