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American Railcar Offers $543M For Greenbrier

Tue, 12/18/2012 - 10:59am

NEW YORK (AP) -- Carl Icahn is again trying to bring together railcar makers American Railcar and Greenbrier. American Railcar, which he controls, has offered to buy Greenbrier for $542.9 million.

Icahn bought a nearly 10 percent share in Greenbrier last month, saying then that its shares were undervalued. The activist investor, known for buying into struggling companies and shaking them up, also tried to combine the two companies back in 2008, but talks failed.

American Railcar Industries Inc., which is based in St. Charles, Mo., bid $20 per share for Greenbrier Cos., according to a Tuesday Securities and Exchange Commission filing. That's 5 percent higher than Greenbrier's closing price Monday of $18.97.

Greenbrier, which is based in Lake Oswego, Ore., has said that its prospects for 2013 are unclear because of the weak economy and uncertain outlook. In the quarter through August, profit dropped more than 40 percent because of delivery delays and severance costs. Shares are down 22 percent since the beginning of the year. They added 55 cents, or 2.9 percent, to $19.50 in premarket trading Tuesday.

American Railcar stock is up 35 percent in 2012.

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