TENNECO ANNOUNCES AGREEMENT TO SELL RAILROAD
TENNECO ANNOUNCES AGREEMENT TO SELL RAILROAD HOUSTON, Nov. 13 /PRNewswire/ -- Tenneco Inc. (NYSE: TGT) announced
today that it signed an agreement in principle to sell the Corinth and Counce Railroad Company to a newly formed operating subsidiary of MidSouth Corporation for approximately $32 million. The 26-mile railroad is a subsidiary of Packaging Corporation of America (PCA), a unit of Tenneco.
The transaction is subject to board and regulatory approvals and should be completed before year end. The Corinth and Counce Railroad operates between Corinth, Miss., and Counce, Tenn., and connects with the Yellow Creek Port on the Tennessee- Tombigbee Waterway. The railroad serves a number of customers including PCA's linerboard mill at Counce. In September, the company announced that it would sell the railroad and two other short line railroads as part of a $2 billion action plan to strengthen its balance sheet and enhance financial flexibility. The action plan includes the sale of $1.05 billion in non-core assets, along with cuts in capital spending and other costs, 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- 11/13/91 /CONTACT: Christine LeLaurin of Tenneco, 713-757-2761/ (TGT) CO: Tenneco Inc.; MidSouth Corporation ST: Texas, Mississippi IN: TRN SU: TNM SM -- NY092 -- 4123 11/13/91 17:01 EST
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|Date:||Nov 13, 1991|
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