RailAmerica, Inc. (NYSE:RA) Investor Alert: Takeover Under Investigation

An investigation on behalf of investors of RailAmerica, Inc. (NYSE:RA) in connection with the takeover was announced and NYSE:RA stockholders should contact the Shareholders Foundation.

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San Diego, CA -- (SBWire) -- 07/25/2012 --An investigation on behalf of investors in RailAmerica, Inc. (NYSE:RA) shares was announced concerning whether the offer by Genesee & Wyoming Inc to acquire RailAmerica, Inc. at $27.50 per NYSE:RA shares

Investors who purchased shares of RailAmerica, Inc. (NYSE:RA) prior to July 23, 2012, and currently hold any of those NYSE:RA shares have certain options and should contact the Shareholders Foundation at mail(at)shareholdersfoundation.com or call +1(858) 779 - 1554.

The investigation by a law firm concerns whether certain officers and directors of RailAmerica, Inc. breached their fiduciary duties owed to NYSE:RA investors in connection with the proposed acquisition.

On July 23, 2012, Genesee & Wyoming Inc. (NYSE: GWR) and RailAmerica, Inc. (NYSE: RA) announced that they have entered into an agreement under which Genesee & Wyoming Inc will acquire RailAmerica for an all cash purchase price of $27.50 per share.

Following the takeover news NYSE:RA shares jumped from $24.81 per share on Friday to $27.30 per share on Monday, July 23, 2012.

However, at least one analyst has set the high target price for NYSE:RA at $28 per share. In addition RailAmerica, Inc. (NYSE:RA) reported that its annual Revenue increased from $425.77million in ’09 to $551.12million in 2011 and its Net Income over the respective time frames rose from $15.84million to $36.87million. Also, shares of RailAmerica, Inc. (NYSE:RA) grew from $9.24 per share in October 2010 to over $26 per share in mid-July 2012.

Therefore the investigation for NYSE:RA investors concerns whether the proposed transaction is unfair to RailAmerica stockholders. Specifically, the investigation focuses on whether the RailAmerica, Board of Directors undertook an adequate sales process, adequately shopped the company before entering into the transaction, maximized shareholder value by negotiating the best price, and acted in the shareholders' best interests in connection with the proposed sale.

Those who are current investors in RailAmerica, Inc. (NYSE:RA) and purchased their RailAmerica, Inc. (NYSE:RA shares prior to the announcement, have certain options and should contact the Shareholders Foundation.

Contact:
Shareholders Foundation, Inc.
Joelle Day
3111 Camino Del Rio North - Suite 423
92108 San Diego
Phone: +1-(858)-779-1554
Fax: +1-(858)-605-5739
mail@shareholdersfoundation.com

Media Relations Contact

Joelle Day
Media and Client Relations Manager
Shareholders Foundation, Inc.
858-779-1554
http://www.ShareholdersFoundation.com

View this press release online at: http://rwire.com/155011