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The Spokesman-Review Newspaper
Spokane, Washington  Est. May 19, 1883

Canadian Railroad To Buy Illinois Central

From Staff And Wire Reports

Canada’s biggest freight railroad said Tuesday it has agreed to purchase Illinois Central railroad in a $2.4 billion cash-and-stock deal that would create a network spanning nearly 19,000 miles from the Gulf of Mexico through Canada.

The announcement from Canadian National Railway Co. of Montreal comes less than a week after Chicago-based Illinois Central said it was putting itself up for sale. Canadian National would buy 46.1 million of Illinois Central’s 61.4 million shares outstanding at $39 a share and assume $560 million in Illinois Central debt under terms of the agreement.

The deal consists of 75 percent cash and 25 percent Canadian National stock.