STB plans to close door in January on DM&E's merger with former I&M Rail Link (9/27/2002)
9/27/2021Surface Transportation Board Sept. 26 accepted for consideration the merger application and two related filings from Dakota, Minnesota & Eastern Railroad Corp. (DM&E), its parent company Cedar American Rail Holdings Inc. and Iowa, Chicago & Eastern Railroad Corp. (IC&E), formerly I&M Rail Link. The board deemed the proposed merger a minor transaction.
In the related filings, DM&E is requesting trackage rights to Union Pacific Railroad's 3,700-foot line in Owatonna, Minn., IC&E's 72-mile Owatonna-to-Mason City, Iowa, line and Iowa Northern Railway Co.'s 8.8-mile Plymouth Junction-to-Nora Springs, Iowa, line. The rights would enable DM&E and IC&E to interchange at Owatonna.
STB plans to issue a final decision on the application and filings Jan. 27, 2003, unless the board decides to require an environmental assessment or environmental impact statement.
Cedar American Holdings, a wholly owned non-railroad DM&E subsidiary, owns all of IC&E's outstanding common stock. However, before DM&E completed its I&M Rail Link acquisition, Cedar American Holdings placed the IC&E stock in an independent voting trust, where it will remain until the board issues its final merger decision.
If STB approves the merger, Cedar American Holdings plans to function as a holding company for DM&E and IC&E, overseeing the railroads' management and operations, and performing marketing and administrative services.
Source: Progressive Railroading Daily News