Canadian Pacific takes major stake in DM&E

Electra Private Equity, Candover sell interest in DM&E

LONDON (Thomson Financial) - Private equity funds Electra Private Equity PLC and Candover Investments PLC said they have agreed to sell their stakes in US rail company Dakota, Minnesota & Eastern Railroad Corp to a unit of Canadian Pacific Railway Company.

DM&E is being sold for 1.48 bln usd cash, plus a contingent 1 bln usd made up of 350 mln usd at the start of construction on the Powder River Basin Expansion Project and up to 707 mln usd if certain coal transport targets are beaten.

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