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Trains News Wire FLASH EXCLUSIVE: Iowa Pacific to sell stake to new investor
I’m rating this article with a “5.”
I’m in no position to make an assessment of the deal with the Sam Zell investment companies. However, I cannot believe that Sam Zell or his companies has the love of the railroad business that Ed Ellis has. I do hope that Ed Ellis has made the right decision, and has not been under great pressure to make such a decision.
I wonder how Ed feels letting go of his baby.
$20 says Ed get fired…or he “resigns” from his chairman position
The spirit of the Nineteenth century investors lives on.
Go get 'em, Ed.
Be careful what you wish for.
If Ed sells more than 50%, he loses control. Outside investors may be more interested in returns than railroading. Not that Ed doesn’t care about returns (who wouldn’t), but outside investors may be less enthusiastic about some of Iowa Pacific’s initiatives, especially if the payback is long.
Interesting!!!
Sam Zell? The man who ruined the Chicago Tribune Co. Good luck, Ed.
I don’t see this ending well as to how most of us would like.
was Warren Buffett wrong to buy BNSF? My railroad stocks have done pretty well for me lately, so it is no surprise that some of the rest of the world is waking up to the fact that railroads able to compete on price and service are doing a good job of doing just that.
Many said the same thing when Buffet bought BNSF, “what does he know about railroads, what does he want with them, sell them off?”
Zellig will do to Ed’s train business what he did to the Tribune Co: Bleed it dry.
80% of what?
The key here is the valuation.
One of THE toughest things in business: valuing a private company or worse - a startup.
This won’t end well. Ride 'em while we can.
The comments about Zell have merit!!!
This is bad news. Ride Pullman Rail Journeys now while you still can. It won’t be around for long. Neither will the excursion trains. Ed Ellis will be out within a year or so and then the passenger end of things will be discontinued and the shortlines will be bled dry and then either sold off or scrapped. Believe me, Sam Zell is no Warren Buffett
Sam Zell is NOT Warren Buffett.
Warren bought BNSF because he saw it as a strong company making a profit that would fit in with his other holdings. He said he was going to leave its management alone to keep doing what it was doing, and he has done just that.
Despite what Ed says about opportunities to do new things, I can’t help thinking this is the beginning of the end for all the passenger operations, which I have to believe are being subsidized by the freight lines. I just hope Zell doesn’t bleed off their profits too and run them into the ground.