my initial guess is that Amtrak owns substantial real estate in many cities that has considerable value. (NYP,WAS,PHL,CHI,BOS etc.). could 'passportrr.com' have in mind a spin-off of the rail operations (meaning the end of passenger service, but I'm sure they don't care) and developing the real estate/air rights?
PNWRMNM Sam, IIRC the government appoints a majority of ATK's board. That places the government firmly in control, which seems to make the stock worthless, except possibly in liquidation. Do you concur? Mac McCulloch
Sam,
IIRC the government appoints a majority of ATK's board. That places the government firmly in control, which seems to make the stock worthless, except possibly in liquidation. Do you concur?
Mac McCulloch
The stock does not have any market value, but it may not be worthless. Amtrak had offered the shareholders 3 cents a share, although it claimed that the stock was worthless. If it believed the stock was worthless, why did it offer the shareholders 3 cents?
As mentioned, if the report of the interested party is accurate, he may believe that the stock will increase in value rolling forward, i.e. Amtrak will have a change of heart and will offer more than 3 cents per share, or the stock has some speculative value.
In the case of liquidation the common shareholders would have no standing. Liquidation is not likely to happen. However, if Amtrak were privatized, the stock may have some value. I don't have enough information to know what is going on.
As of September 30, 2012, Amtrak had 9,385,694 shares of common stock issued and outstanding. The par value is $10 per share. The largest single shareholder appears to be American Premium Underwriters. It owned 55.8 per cent of the issued and outstanding shares.
Some time between 1997 and 2002 Amtrak offered to buy back all the outstanding common shares at 3 cents per share, although it believed that the shares were worthless. The major shareholders refused the offer in a letter dated November 2, 2000.
In May 2008 American Premium Underwriters brought a lawsuit against Amtrak. It claimed that Amtrak had eroded the value of the stock. Apparently the suit is still before the courts. American Premium is seeking damages of $52 million plus 40 years of interest.
The common stockholders have voting rights for amendments to Amtrak's Articles of Incorporation proposed by the Board of Directors. Thus, it appears that the stock is valuable in that it gives the holders a voice at the table albeit a weak one.
PassPortRR may see a commercial advantage in having a voice on amendments to Amtrak's Articles of Incorporation. Or it may believe that owning the stock would allow it use options to speculate on which way the stock is likely to move. Or it may have a hidden agenda that no one knows about.
www.passportrr.com
Worked for me
Never too old to have a happy childhood!
Never mind web address for passport is a dead link
Lets say that running national passenger service actually does make money but not in the traditional sense.
Herzog and BNSF makes $$ by contracting with Gov agency's under purchase of service contracts for the essential service of running commuter trains. So Amtrak as a private inc. contracts with the feds to run the essential service of a national railroad system.
Is it possible that this is a get rich quick scheme ? Too msny questions that some one with knowledge of the RR owned stock may answer. For example is the stock restricted from being sold. ? Is the Government or Amtrak able to buy back the stock ? Penn Central ownership ? ETC ?
Phoebe Vet "So what the heck does PassPortRR think they are going to gain by making a cash offer for this stock?" Control.
"So what the heck does PassPortRR think they are going to gain by making a cash offer for this stock?"
Control.
I would seriously doubt the credibility of this announcement. Unless these characters have a reliable independent source of funding, they would still depend on Congressional appropriations to pay their bills.
Dave
Lackawanna Route of the Phoebe Snow
Truly a strange story here, a partial quote is below, click the link if you want to read the rest of it:
Under the terms of the Offer to Purchase, PassPortRR will offer make $1.50 per share cash for all of the Common Stock of Amtrak. As a result of the transaction, PassPortRR will acquire a consolidated equity position. The tender offer is subject to the receipt of all issued shares validly tendered and not withdrawn, and other customary conditions. PassPort RailRoad USA (passportrr.com) is a transportation holding company based in Phoenix, Arizona. For more than 20 years, PassPortRR has actively promoted the development, expansion and restoration of competitive intercity passenger rail alternatives in the United States. According to Stanley E. Taylor II, CEO of PassPortRR,“We believe that Amtrak represents the best option to advance and deliver intercity rail as a transportation alternative to highway gridlock and airline congestion. In America, talking trains means Amtrak.” http://www.newswiretoday.com/news/132417/
PassPort RailRoad USA (passportrr.com) is a transportation holding company based in Phoenix, Arizona. For more than 20 years, PassPortRR has actively promoted the development, expansion and restoration of competitive intercity passenger rail alternatives in the United States. According to Stanley E. Taylor II, CEO of PassPortRR,“We believe that Amtrak represents the best option to advance and deliver intercity rail as a transportation alternative to highway gridlock and airline congestion. In America, talking trains means Amtrak.”
http://www.newswiretoday.com/news/132417/
As I understand it, US railroads received stock in Amtrak in exchange for contributing equipment when Amtrak was formed. AFAIK, that stock has never paid a dividend.
So what the heck does PassPortRR think they are going to gain by making a cash offer for this stock?
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