Canadian Pacific reaches deal to sell western part of DM&E rail line

CALGARY - Canadian Pacific Railway Ltd. (TSX:CP) has agreed to sell the western end of its Dakota, Minnesota

The buyer is Genesee

As a result of the transaction, CP is expected to record a net after-tax writedown of about $240 million in its fourth-quarter 2013 financial statements. The sale is expected to be cash positive for the Calgary-based railway and have no material effect on future earnings.

The part of the DM


Canadian Pacific will continue to own and operate about 3,000 kilometres of former DM

"There is a strong long-term franchise here and we are pleased to have found a partner in Genesee

"South Dakota remains an important economic driver in the Midwest and CP looks forward to working with G

The deal is expected to close by the middle of 2014, provided it receives approval from the U.S. Surface Transportation Board and meets other conditions.

Canadian Pacific acquired DM

Harrison took the top job at CP in mid-2012 following a bruising proxy fight that led to the ouster of his predecessor, Fred Green. The activist investor who pushed for the management shakeup, Pershing Square Capital Management's Bill Ackman, had called CP's DM