Jan 9 Greenbrier Cos Inc remains open to
talks with Carl Icahn about a merger with American Railcar
Industries Inc, the railcar maker's chief executive
said, after rejecting two takeover offers from the billionaire
investor in the last month.
Icahn-controlled American Railcar offered to buy Greenbrier
in December for about $550 million and later raised its offer.
The offers were rejected by Greenbrier as too low.
The activist investor, who built up a stake of 10 percent in
Greenbrier before making the offer, has now reduced it to 3.4
A combination with American Railcar would have to
successfully integrate the two management teams and make the
merged company less cyclical, Greenbrier CEO William Furman told
analysts in a post-earnings conference call.
Greenbrier shares, which have fallen nearly 35 percent in
2012, were up as much as 6 percent at $18.25 Wednesday on the
New York Stock Exchange.
Earlier in the day, the company reported a
higher-than-expected quarterly profit and said railcar
deliveries for the year will be in the upper end of its prior
Since the 2008 recession, Greenbrier has focused on
diversifying its product lines and increased its exposure to the
energy markets. It makes hopper and tank cars, which carry frack
sand and oil, respectively.
Strong demand from the energy sector has enabled Greenbrier
to ramp up production and successfully increase prices.
The high growth rates of 2011 and 2012, however, are
The Lake Oswego, Oregon-based company expects to deliver
13,000 railcars for the year ending Aug. 31, down from 15,000 it
delivered last year.