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Hassles of Air Travel Push Passengers to Amtrak

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[quote user="Alan F"] [quote user="MidlandMike"] [quote user="Sam1"] Amtrak is the moniker for the National Railroad Passenger Corporation. It is a federally sponsored corporation. The federal government owns the preferred stock of the corporation.  The common stock was issued to the private carriers that agreed to contribute their equipment upon start-up of the corporation. They refused a 2002 Amtrak offer to buy back their stock. ... [/quote] Why did the RRs refuse the Amtrak offer to buy back the common stock.  Were they holding out for a higher price, or did they want to have a say in how Amtrak was run (presuming they had common stock voting rights) ? <div style="clear:both;"></div> [/quote] American Premier Underwriters (APU), owner of 55.8% of Amtrak's common stock (from Penn Central) filed a lawsuit seeking $52 million plus 40 years of interest. The federal court granted Amtrak's motion to dismiss the lawsuit in 2011, but APU filed an appeal. Could drag on for years and years. In short, APU wants money.  The subject is covered at length in the annual financial report for FY 2011 which is available on Amtrak's website in the Reports & Documents page. [/quote] APU's law suit is part of the issue.  Equally important appears to be the issue of the fair market value or value of the stock.  Amtrak offered the holders $0.03 per share.  Counsel representing the four holders rejected the offer.  Your correct in stating that the issue probably will be tied up in the courts for years. At the end of the day everyone except the lawyers will come out a loser.
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