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GRAND TRUNK/CN NORTH AMERICA OFFERS CENTRAL VERMONT ASSETS FOR SALE

 DETROIT, Oct. 26 /PRNewswire/ -- CN North America, through its U.S. holding company, Grand Trunk Corporation (GTC), announced plans to offer for sale the assets of Central Vermont Railway (CV).
 The sale of CV is part of a restructuring strategy by CN North America. As part of this strategy, CN North America said it is divesting line segments to regional and short line carriers in Canada and the U.S., and forging creative marketing and operating arrangements with these new carriers.
 GTC, as the U.S. shareholder of CV, seeks to establish commercial relationships with a qualified buyer to develop the full potential of CV's assets. Together, Detroit-based Grand Trunk and its parent company, Canadian National, market their rail-based transportation and distribution services as CN North America.
 CV currently generates approximately $20 million in annual revenue. CN North America will solicit bids from qualified operators interested in acquiring the CV assets. In addition, a management-led Employee Stock Ownership Plan (ESOP) has been organized and made a bid for the assets. At the end of the bid process, GTC will accept the bid that offers the greatest value to the corporation, and will announce the new owner in early 1994.
 The CV assets to be offered for sale include its rail line that runs from the U.S./Canadian border to New London, Conn. -- a 325-mile strategic freight, passenger and commercial corridor. The railway serves diverse customers whose primary commodities are lumber, newsprint, pulp and paper, grain and copper. CV maintains interline connections with Canadian National Railways, Conrail and nine regional rail carriers.
 -0- 10/26/93
 /CONTACT: Gary Jones, 313-396-6586, or Gloria Combe, 313-396-6574, both of CN North America/


CO: CN North America; Central Vermont Railway ST: Michigan, Vermont IN: TRN SU: TNM

JG-CJ -- DE006 -- 2492 10/26/93 15:01 EDT
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Publication:PR Newswire
Date:Oct 26, 1993
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