TENNECO AGREES TO SELL RAILROADS FOR $54 MILLION
TENNECO AGREES TO SELL RAILROADS FOR $54 MILLION HOUSTON, Nov. 22 /PRNewswire/ -- Tenneco Inc. (NYSE: TGT) today
reported it has reached agreements in principle to sell all three short-line railroads included in its $2 billion plus action plan initiated to strengthen its balance sheet and enhance financial flexibility. The aggregate sales amount for the railroads will total approximately $54 million.
The company agreed today to sell two short-line railroads to Rail Management and Consulting Corporation of Dothan, Ala., for $22 million. This agreement involves the 14-mile Marinette, Tomahawk & Western Railroad in Tomahawk, Wis., and the 13-mile Valdosta Southern Railroad in Valdosta, Ga. Last week the company announced an agreement in principle to sell The Corinth and Counce Railroad to MidSouth Corporation of Jackson, Miss., for $32 million. All three railroads are owned by subsidiaries of Packaging Corporation of America (PCA), a unit of Tenneco. PCA will enter into transportation agreements with the railroads' prospective owners to serve its nearby mills. The transactions are subject to board and regulatory approvals, including the completion of definitive agreements, and should be concluded by year end. In other actions related to the action plan, the company announced that PCA will eliminate about 350 positions from across the company by year end. These cuts will achieve an estimated annualized savings of $19 million. Additional job reductions will take place with the closing of a container manufacturing plant in Bristol, Pa., announced last month. In addition, PCA plans to sell certain timberlands in various states as part of the action plan. The action plan includes the sale of $1.05 billion in non-core assets, cuts in capital spending and other cost reductions, the issuing of equity and a reduction in the common stock dividend. Tenneco Inc. is a Houston-based diversified industrial corporation with major business interests in natural gas pipelines, farm and construction equipment, automotive parts, shipbuilding, packaging, chemicals and minerals. -0- 11/22/91 /CONTACT: Christine LeLaurin of Tenneco, 713-757-2761/ (TGT) CO: Tenneco Inc. ST: Texas IN: TRN SU: TNM TS -- NY034 -- 6345 11/22/91 11:39 EST
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|Date:||Nov 22, 1991|
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