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WISCONSIN CENTRAL SUBSIDIARY TO PURCHASE THREE LINES FROM ITEL RAIL CORPORATION

 WISCONSIN CENTRAL SUBSIDIARY TO PURCHASE THREE LINES
 FROM ITEL RAIL CORPORATION


WC Forms Fox Valley & Western Ltd. to Acquire Fox River Valley, Green
 Bay and Western Railroads in $61.2 Million Transaction
 CHICAGO, Jan. 8 /PRNewswire/ -- Wisconsin Central Transportation Corporation (NASDAQ: WCLX) announced today that its newly formed, wholly owned subsidiary, Fox Valley & Western, Ltd., has reached agreement to purchase the operating rail assets of the Green Bay and Western Railroad Company and The Ahnapee & Western Railway Company for $8.4 million in cash, subject to certain adjustments. WCLX also announced that Fox Valley & Western has reached agreement to purchase the operating assets of the Fox River Valley Railroad Corporation for $52.8 million, subject to certain adjustments, of which $30 million may be paid in WCLX common stock. WCLX has the option to pay a slightly higher all cash purchase price.
 WCLX owns the largest regional railroad in the United States, Wisconsin Central Ltd., which operates 2,029 miles of track in Wisconsin, the Upper Peninsula of Michigan, eastern Minnesota, and northeastern Illinois. Its principal gateways include Chicago, Duluth- Superior, Green Bay, Wis.; Milwaukee, Minneapolis-St. Paul, and Sault Ste. Marie, Ontario. The Green Bay and Western lines consist of 277 miles of track, running principally from East Winona to Green Bay, Wis., Fox River Valley Railroad lines consist of 208 miles of track, running principally from Green Bay to Milwaukee.
 Itel Corporation's (NYSE: ITL) wholly owned subsidiary, Itel Rail Corporation, owns virtually all the stock of the selling railroads.
 Edward Burkhardt, president of WCLX, said, "We believe the acquisition of the Green Bay and Western and the Fox River Valley Railroad will allow us to expand and improve service to rail users in Wisconsin and generally strengthen railroads as a competitive transportation mode in the Upper Midwest."
 Robert Dowdy, president of the selling railroads, said, "With the impressive service record of the Wisconsin Central, I am convinced that the Fox Valley & Western will continue our commitment to provide superior rail service to our valued customers in Wisconsin."
 The principal commodities the new railroad will handle include shipments of coal, paper and related products, chemicals, barley and malt. The acquisition must first be reviewed by the Interstate Commerce Commission in proceedings that could take six months. WCLX and the Green Bay and Western and the Fox River Valley Railroad expect to complete the transaction in late 1992, upon approval by regulatory authorities.
 Wisconsin Central Transportation Corporation common stock is listed on NASDAQ under the symbol WCLX. Itel securities are listed on the New York Stock Exchange under the symbol ITL.
 NOTE TO EDITOR: Maps showing Wisconsin Central, Green Bay and Western, and Fox River Valley railroads are available via FAX. Contact Tom Power, 708-318-4602.
 -0- 1/8/92
 /CONTACT: Tom Power of Wisconsin Central Transportation, 708-318-4602, or Bob Dowdy, president of Fox River Valley Railroad, 414-436-7210/
 (WCLX) (ITL) CO: Wisconsin Central Transportation, Fox River Valley Railroad ST: Illinois; Wisconsin IN: TRN SU:


DS -- MN017 -- 7986 01/08/92 17:42 EST
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Publication:PR Newswire
Date:Jan 8, 1992
Words:501
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