We had heard rumors over the past few days that the DM & E might be up for sale. In today's Rochester Post Bulletin, Jeff Pieters reports that the railroad has asked for offers:
A sale announcement may be coming soon from the Dakota, Minnesota & Eastern Railroad, a rail industry magazine reports.
Trains magazine, in a report posted to its Web site on Tuesday, said that DM&E's parent company, Cedar American Rail Holdings, is accepting bids from about 10 bidders. The bidders are finalizing their offers this week, the magazine reported.
Among the bidders are three railroad companies: Canadian National, Canadian Pacific and a shortline railroad company that was not named.
Cedar American Rail Holdings owns both the DM&E and Iowa, Chicago & Eastern railroads, which together make up a 2,000-mile-plus railroad system.
DM&E was denied on Feb. 26 in its application for a $2.3 billion federal loan.
Selling all or some of its assets is apparently how the company plans to finance a $6 billion upgrade and expansion project that would extend DM&E's reach from near Winona to Wyoming coal fields.
Elsewhere in the Post Bulletin, DFL negotiates with Rochester for state convention. Walz plays a part in the decision:
State and local officials said there are several reasons for Rochester's prominence as a potential convention site. DFL Party leaders hope that holding the convention in the 1st Congressional District, which is home to U.S. Rep. Tim Walz, a first-term Mankato Democrat, will enhance his prospects for re-election.
"Democrats think he's doing a wonderful job in Congress and we would like to give him a boost in his first campaign for re-election," said Brian Melendez, chairman of the state DFL party.
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