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Icahn's American Railcar (ARII) Proposes To Acquire Greenbrier (GBX) For $20/Shr

 December 18, 2012 08:10 AM

(By Balachander) American Railcar Industries Inc. (NASDAQ: ARII), controlled by billionaire-investor Carl Icahn, has proposed to acquire railcar maker Greenbrier Companies Inc. (NYSE: GBX) for $20 per share in cash.

The offer represents a premium of 5.4 percent to GBX's closing price of $18.97 on Monday.

Icahn disclosed a 9.99 percent stake, or about 2.71 million shares, in Greenbrier last month, calling the shares were undervalued.

The activist investor also plans to have further talks possibly relating to "strategic opportunities", a regulatory filing in November showed.

[Related -Carl Icahn's Biggest Dividend Stock Holdings]

Icahn tried to merge Greenbrier with American Railcar in 2008, but was unsuccessful.

"Fundamentally, the mixes of these two companies are complementary," Susquehanna Financial said last month.

Greenbrier is engaged in the manufacture of railroad freight car equipment in North America and Europe. American Railcar designs hopper and tank railcars in North America.

GBX shares have been trading in the 52-week range of $13.10 to $26.66.

ARII shares closed at $32.22 on Monday.

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