FRN

RailAmerica, the holding company that operates a number of short lines across North America (including, for example, the Ottawa Valley Railway in my neck of the woods; see their system map), has agreed to be taken over by investment firm Fortress Investment Group LLC, for nearly $640 million. The deal is worth $1.1 billion when RailAmerica’s debt is included, and will close in 1Q/07. Meanwhile, one of RailAmerica’s cofounders, Gary Marino has gone off and formed another rail holding company, Patriot Rail Corporation, and has acquired the Tennessee Southern. Starting all over again. (Houston Chronicle/AP, MSN Money/Reuters)