Lease financing company GATX is apparently the leading bidder for the unit and is in negotiations with GE, according to Bloomberg and Reuters reports. Interestingly, last week, Reuters had suggested GATX was the likely buyer for CIT's railcar leasing unit.
GATX, which already owns one of the world's largest railcar fleets, has been ramping up its rail business after selling an aircraft leasing unit in 2006, according to a Bloomberg story. The addition of GE Rail Services' assets, which include 165,000 railcars and 120,000 intermodal trailers, containers and chassis, and has a net carrying value of about $2.8 billion, according to a report by Reuters on Aug. 8, would certainly solidify it as the runaway industry leader.
GE put its railcar leasing unit on the block in May, but the auction was eclipsed by the larger GE Appliance bidding announced at the same time.
CIT Group, which has been hurt by the credit crunch, also is actively selling its railcar leasing unit to shore up its finances, but its auction has been slowed by GE's competing sale. - Maria Woehr
See story about GATX bid from Reuters
See story about GATX bid from Bloomberg
See Dealscape: CIT and GE's railcar auctions chug along
See related story about GE auctions from The Daily Deal
See related story about CIT auctions from The Daily Deal
GATX Corp. reportedly is offering between $3 billion and $3.5 billion for General Electric Co.'s railcar leasing business, according to various media reports. 
