Canadian Pacific Buying DME

Canadian Pacific Railway Ltd. has agreed to acquire the Dakota Minnesota and Eastern Railroad Corp. (DME), a portfolio company of Lombard Investments. The deal is valued at up to $2.48 billion, including a $1.48 billion up-front cash payment and another $1 billion in payments contingent on the development of a major rail line linking the DM&E to the Wyoming Powder River Basin coal deposits. Lombard led a $34 million buyout of DME back in 1986.