CHICAGO — Santa Fe Southern Pacific, the diversified railroad company in the process of restructuring itself, said Tuesday that it will sell stock in its Santa Fe Energy Co., spinoff some real estate and buy back more than a third of its shares.
The company, which said the announcements were part of its plans surrounding the government-required sale of its Southern Pacific railroad, said the share offering for its energy business should be completed by Dec. 31. Up to 20% of the oil and gas subsidiary may be sold.
The company's directors also authorized creation of a real estate investment trust into which about $300 million of Santa Fe Southern Pacific's property holdings will be spun off.
Most of the stock of the trust, a financial body managed by investment professionals whose shares can be publicly traded like those of a mutual fund, will be distributed to Santa Fe Southern Pacific shareholders as a special dividend.