OT? - URS to buy WGI for $2.6 billion, D&M Rail Link anyone?

[Anonymous]

From the Missoulian...

http://www.missoulian.com/articles/2007/05/28/bnews/br79.txt

Now, what does this have to do with railroads?

The majority stock holder of WGI is Dennis Washington, the Missoula billionaire who also owns the privately held Washington Companies, one of which happens to be Montana Rail Link.

Now for the conspiracy theories.....

As we all know, the FRA recently denied the DM&E a $2.3 billion loan.  DM&E is owned by Cedar American Rail Holdings, which also owns IC&E, formerly I&M Rail Link which was owned by, you guessed it, Dennis Washington.  Thus, there is a past transactional relationship between the Washington Companies and Cedar American Holdings.

Hmmmmm......$2.6 billion for Dennis Washington.......DM&E needs $2.3 billion......

Anyone for the Dakota & Montana Rail Link?

[solzrules]

That is an interesting scenario. 

Who knows what is going on behind the scenes over at CARH? 

I would just love to be a fly on the wall at this stage of the game. 

MRL and DME over the old PCE through Washington would be a new railroad, for sure. 

[Dakguy201]

Interesting idea as to what might happen.  However, I don't think this represents a major payday for Mr. Washington.  A recent security filing indicates the top 22 insiders collectively own only 0.55% of the company. 

WGI is not that far removed from a bankruptcy -- I believe it occured in 1991.  Usually, the previous common stockholders take a major trimming in a bankruptcy restructuring.

[JSGreen]

Anyone for the Dakota & Montana Rail Link?

 

Hmmmm....DMRL....that should be a painless merger....

 

Pethidine (Demoral) is indicated for the treatment of moderate to severe pain, and is delivered as its hydrochloride salt in tablets, as a syrup, or by intramuscular or intravenous injection. For much of the 20^th century, pethidine was the opioid of choice for many physicians "

 

 When they start their passenger service, they can bill it as "The Painless way to Travel..."

[CSSHEGEWISCH]

I think that all we see here is a merger or acquisition involving two rather large construction contractors.  Anything suggesting that Cedar American Holdings may gain from the fallout of the deal is speculation of the highest order.  I&M Rail Link was unloaded because it didn't fit in with the current operations of the Washington Group.

[arbfbe]

From the Missoulian...

http://www.missoulian.com/articles/2007/05/28/bnews/br79.txt

Hmmmmm......$2.6 billion for Dennis Washington.......DM&E needs $2.3 billion......

Anyone for the Dakota & Montana Rail Link?

Now this is way too far fetched to warrant much comment.  First of all, that $2.5 billion did not all go to Mrl Washington.  WGI was a publicly traded company so that price which also involved a stock swap went to thousands of stockholders.  There would/will be tax issues which will reduce the profits somewhat.  The article notes the price represents a 14% premium to Friday's closing price for WGI, not a bad 1 day gain.

To truely integrate the two railroads you have to find a connection from Jones Jct, MT to Colony, WY and that means a lot of railroad to build which results in a connection with the BNSF @ Spokane, WA. 

So conspiricy or pipe dream do not look for this to happen any time soon.  This is only slightly more likely to happen than rebuilding the MILW Pacific Coast Extension via Cadotte Pass or MRL beginning a line over Lolo Pass to the Pacific Ocean.

[mudchicken]

Dream on FM -

WGI is the bastardized remains of Morrison-Knudsen (MK) which bankrupted because of bad management (Tom Agee redux) and then almost bankrupted Ted Washington because of the financial shennanigans of Raytheon (who initially bought a failing MK and canibalized it) . What you have is two companies in decline (one almost in freefall) combinining in the vain hope to preserve market share. (not gonna happen bubba).... Both companies have some really good people, hobbled by poor management plus the beancounters that are too much in control. WGI sued Raytheon over the sale contract (read assumed debt) and FTC was into both outfit's business, with an unclear outcome IIRC.

(Really bizarre in the fact that WGI pretty well destroyed its own engineering/surveying capabilities [old Centennial Engining core] in the attempt to concentrate on design-build and the fast buck ... to the point of hiring outside consultants instead of using its own very capable folks, with disastrous results)...DM&E rationale?  

[MichaelSol]

Dream on FM -

WGI is the bastardized remains of Morrison-Knudsen (MK) which bankrupted because of bad management (Tom Agee redux) and then almost bankrupted Ted Washington because of the financial shennanigans of Raytheon ...

William Agee. Dennis Washington.

William Agee/Mary Cunningham. Quite a couple. Not just bad management, but after they ran Bendix Corp. into the ground in a well-publicized debacle, MK just brought them on board like they just ought to know how to run one of the world's largest construction and engineering companies. It was MK suicide, and everyone could see it -- except the Board at MK.

WGI was headquartered in the World Trade Center, and its WGI and Gibbs & Hill headquarters were destroyed 9/11/01.

 

[Anonymous]

Dream on FM -

WGI is the bastardized remains of Morrison-Knudsen (MK) which bankrupted because of bad management (Tom Agee redux) and then almost bankrupted Ted Washington because of the financial shennanigans of Raytheon (who initially bought a failing MK and canibalized it) . What you have is two companies in decline (one almost in freefall) combinining in the vain hope to preserve market share. (not gonna happen bubba).... Both companies have some really good people, hobbled by poor management plus the beancounters that are too much in control. WGI sued Raytheon over the sale contract (read assumed debt) and FTC was into both outfit's business, with an unclear outcome IIRC.

(Really bizarre in the fact that WGI pretty well destroyed its own engineering/surveying capabilities [old Centennial Engining core] in the attempt to concentrate on design-build and the fast buck ... to the point of hiring outside consultants instead of using its own very capable folks, with disastrous results)...DM&E rationale?  

Poor mudchicken!  The little feller never seems to have any fun down there at the La Junta compound. 

FYI - It's William Agee, not Tom Agee.  And it's Dennis Washington, not Ted Washington. 

Speaking of name forgetfullness......

I was going to tell the joke about the drunken BNSF employee passed out on the doorstep of Rosie's Cantina, but I'd hate for Kalmbach Publishing to suffer the same fate as DM&E, so I'll digress.

 

[Anonymous]

From the Missoulian...

http://www.missoulian.com/articles/2007/05/28/bnews/br79.txt

Hmmmmm......$2.6 billion for Dennis Washington.......DM&E needs $2.3 billion......

Anyone for the Dakota & Montana Rail Link?

Now this is way too far fetched to warrant much comment.  First of all, that $2.5 billion did not all go to Mrl Washington.  WGI was a publicly traded company so that price which also involved a stock swap went to thousands of stockholders.  There would/will be tax issues which will reduce the profits somewhat.  The article notes the price represents a 14% premium to Friday's closing price for WGI, not a bad 1 day gain.

To truely integrate the two railroads you have to find a connection from Jones Jct, MT to Colony, WY and that means a lot of railroad to build which results in a connection with the BNSF @ Spokane, WA. 

So conspiricy or pipe dream do not look for this to happen any time soon.  This is only slightly more likely to happen than rebuilding the MILW Pacific Coast Extension via Cadotte Pass or MRL beginning a line over Lolo Pass to the Pacific Ocean.

Actually, a court ordered enforcement of the Staggers Act competitive caveats could result in certain railroads receiving rights over certain other railroads.....

BTW - There are a number of rail holding companies which have disparate rail properties scattered across the country with no physical connection to each other.

How DO they do it?

[arbfbe]

Dream on FM -

WGI is the bastardized remains of Morrison-Knudsen (MK) which bankrupted because of bad management (Tom Agee redux) and then almost bankrupted Ted Washington because of the financial shennanigans of Raytheon (who initially bought a failing MK and canibalized it) .   

Whoa, there old timer.  You have been out in the hot sun or driving rain too long in the last several days.  Your WGI memories have become confused.  William Agee, tried to ruin one of the aerospace companies in Denver, Bendix Corp and still got hired by MK.  Dennis Washington was able to pick up the pieces of MK and expand with the purchase of one of the large engineering/construction cos in CA, Kasler?  Raytheon never owned MK or WGI.  What they did have was an engineering, construction, construction management arm to supervise the design and construction of large dams and nuclear power plants.  Raytheon decided they wanted to focus on defense projects and WGI decided to pick up the projects Raytheon had in progress which were a good fit for WGI (MK) talents and resources.  Raytheon was accused of keeping some of the funds for the projects claiming this was for work perfromed.  There was a dispute as to whether or not that was true account some of the sub contractors submitted bills for work performed which Raytheon claimed had been paid.  WGI sued and both parties agreed to a settlement with neither company admitting any wrong doing.  It was Raytheon who was liquidating portions of their company not WGI.  WGI was forced into bankruptcy account the Raytheon deal and reorganized after all the WGI stockholders took quite a bloodbath. 

[Anonymous]

Interesting idea as to what might happen.  However, I don't think this represents a major payday for Mr. Washington.  A recent security filing indicates the top 22 insiders collectively own only 0.55% of the company. 

WGI is not that far removed from a bankruptcy -- I believe it occured in 1991.  Usually, the previous common stockholders take a major trimming in a bankruptcy restructuring.

According to a recent MRL Groups posting, Dennis Washington has stock options in WGI that amounts to 15% of common stock.

I remember after the last WGI bankruptcy there was a bit of a too-doo about Dennis Washington wanting to reclaim a major stockholder stake in the reorganized company despite his previous stockholdings being wiped out along with everyone elsel's (including mine!)

[Murphy Siding]

     Newsflash!!  A DM&E passenger train was in Sioux Falls, S.D.(hometown of DM&E and Cedar American Rail Holdings) this afternoon.  One engine, and 3 passenger cars, all in DM&E blue & yellow.

     I tried to see if Denny Washington's jet was parked at the airport, but the view from the grassy knoll wasn't that good.  I didn't have enough time to check the view from the school book depository.

     Am I the only one who finds it funny, that DM&E dignitairies, and their VIP travelers, must ride on 50+ miles of BNSF rail lines before they can ride the home rails?  I always wonder what kind of priority that train gets from BNSF dispatchers?

[Anonymous]

     I tried to see if Denny Washington's jet was parked at the airport, but the view from the grassy knoll wasn't that good.  I didn't have enough time to check the view from the school book depository.

You know.....if I had typed that exact same paragraph  - except with Matt Rose's name in place of Dennis Washington's name - I'm fairly certain the Ilks would have accused me of terrorism or something to that effect, and would have subsequently had me kicked off the forum.

Never fear, I'm just pointing out some of the double standards of this forum.  I know Mr. Washington has nothing to fear from you, Murph.

Hmmmm......that gives me an idea for the "return gift"!      (inside joke!)

     Am I the only one who finds it funny, that DM&E dignitairies, and their VIP travelers, must ride on 50+ miles of BNSF rail lines before they can ride the home rails?  I always wonder what kind of priority that train gets from BNSF dispatchers?

I too have wondered why DM&E chose to relocate to Sioux Falls from Brookings, since Brookings is on the DM&E and Sioux Falls isn't, even though it is the largest town in South Dakota.  Let's see, UP's headquarters is located in Omaha which is on the UP, BNSF's headquarter's is located in Shanghai .......er, I mean "Fort Worth, Texas"....., MRL in Missoula, NS in Roanoke(?).........

[Murphy Siding]

     I tried to see if Denny Washington's jet was parked at the airport, but the view from the grassy knoll wasn't that good.  I didn't have enough time to check the view from the school book depository.

You know.....if I had typed that exact same paragraph  - except with Matt Rose's name in place of Dennis Washington's name - I'm fairly certain the Ilks would have accused me of terrorism or something to that effect, and would have subsequently had me kicked off the forum.

Never fear, I'm just pointing out some of the double standards of this forum.  I know Mr. Washington has nothing to fear from you, Murph.

Hmmmm......that gives me an idea for the "return gift"!      (inside joke!)

     Am I the only one who finds it funny, that DM&E dignitairies, and their VIP travelers, must ride on 50+ miles of BNSF rail lines before they can ride the home rails?  I always wonder what kind of priority that train gets from BNSF dispatchers?

I too have wondered why DM&E chose to relocate to Sioux Falls from Brookings, since Brookings is on the DM&E and Sioux Falls isn't, even though it is the largest town in South Dakota.  Let's see, UP's headquarters is located in Omaha which is on the UP, BNSF's headquarter's is located in Shanghai .......er, I mean "Fort Worth, Texas"....., MRL in Missoula, NS in Roanoke(?).........

Now that you point that out, it does sound a little odd, doesn't it?  Do you need me to explain the connection with conspiracy theories?

     I have a hunch that DM&E and the city of Brookings just don't get along.

[Driline]

I live in the Quad Cities and one of our main railroads is the ICE(formerly Montana Rail Link)(formerly SOO LINE)(Formerly Milwaukee Road) etc., which I assume reading your commentary here that they are also part of DM&E.

Well I gotta say their choice of locomotive colors is just horrible. I much prefer the SOO LINE livery over theirs, hence my reason for modeling the 1995 era here in the Quad Cities.

Yes this reply has nothing to do with the current thread but it confirms my choice of NOT choosing a loser

[Anonymous]

I live in the Quad Cities and one of our main railroads is the ICE(formerly Montana Rail Link)(formerly SOO LINE)(Formerly Milwaukee Road) etc., which I assume reading your commentary here that they are also part of DM&E.

Well I gotta say their choice of locomotive colors is just horrible. I much prefer the SOO LINE livery over theirs, hence my reason for modeling the 1995 era here in the Quad Cities.

Impossible.  There is no locomotive display worse than that big SOO painted onto the plain white.  It looks like something made by a last days cult! 

Granted, I have not seen the ICE locos, but c'mon, how bad can it be!

[JSGreen]

  
     I tried to see if Denny Washington's jet was parked at the airport, but the view from the grassy knoll wasn't that good.  I didn't have enough time to check the view from the school book depository.

 

Not sure where the Jet is, but the MRL business cars were spotted in Missoula near the train station this morning...looking like they were ready to go somewhre! 

[Driline]

I live in the Quad Cities and one of our main railroads is the ICE(formerly Montana Rail Link)(formerly SOO LINE)(Formerly Milwaukee Road) etc., which I assume reading your commentary here that they are also part of DM&E.

Well I gotta say their choice of locomotive colors is just horrible. I much prefer the SOO LINE livery over theirs, hence my reason for modeling the 1995 era here in the Quad Cities.

Impossible.  There is no locomotive display worse than that big SOO painted onto the plain white.  It looks like something made by a last days cult! 

Granted, I have not seen the ICE locos, but c'mon, how bad can it be!

Oh they pretty much suck. Trust me

[Murphy Siding]

I live in the Quad Cities and one of our main railroads is the ICE(formerly Montana Rail Link)(formerly SOO LINE)(Formerly Milwaukee Road) etc., which I assume reading your commentary here that they are also part of DM&E.

Well I gotta say their choice of locomotive colors is just horrible. I much prefer the SOO LINE livery over theirs, hence my reason for modeling the 1995 era here in the Quad Cities.

Impossible.  There is no locomotive display worse than that big SOO painted onto the plain white.  It looks like something made by a last days cult! 

Granted, I have not seen the ICE locos, but c'mon, how bad can it be!

Oh they pretty much suck. Trust me

They're sort of light blue and yellow.  You either like the color combination or you don't-no middle ground.

[blhanel]

More of a medium to dark blue...

 

Kudos to John Means for getting this shot in Bellevue- I just randomly picked it out of the rrpicturearchives. 

[Murphy Siding]

More of a medium to dark blue...

Kudos to John Means for getting this shot in Bellevue- I just randomly picked it out of the rrpicturearchives. 

I'm assuming that IC&E and DM&E are the same shades of blue and yellow.  With the exception of the locomotive I saw yesterday, pulling the passenger cars, every DM&E locomotive I've seen is a pale, milky, faded out blue, with a faded, dirty yellow accent.  They don't look nearly as regal as in that photo.