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from Outstanding Investor Digest's July 31, 2000 Edition

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LONGLEAF PARTNERS FUNDS'
MASON HAWKINS, C.T. FITZPATRICK & STALEY CATES

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With Wisconsin Central, there's a lot to like....
    Buford: Wisconsin Central [WCLX/NASDAQ] is the nation's largest regional rail line and owns several foreign rail operations. The current stock price is $13 versus a value of about $25. Our partners ... are original founders of the firm and owners of a substantial amount of stock.
    The company has several sources of value growth. One is that domestic rail will continue to participate in the growth of traffic in the Northeast corridor which is itself fueled by trade between Canada, the U.S. and Mexico. It should also see improvement in the profitability of its international operations - especially its U.K.-based [unit,] EW&S [English, Welsh & Scottish Railway]. This entity was very poorly managed by its previous owner - the U.K. government. Furthermore, the company is repurchasing its own shares.

Plus, we expect a pop in the underlying value of its assets.
    Buford: Value realization could come from several areas - one being that the entire rail sector has gone from an average P/E of over 16 times to under 10 times today. This is due to several large, poorly executed mergers. However, as the industry works through these problems, we expect to see an increase in the multiples ascribed to rail companies - especially those rail companies which have shown no operating problems like Wisconsin Central.

Mgm't may speed up the process. And maybe we can help.
    Buford: Its foreign rail assets are entirely severable and could be sold to fund continued share repurchases. And the domestic rail is an important connection to several much larger rails. You could lower costs and significantly increase revenues by folding them into such an entity.
    Here again, we've filed a 13D to give us the flexibility to discuss these and any other possibilities with the company's management and/or third parties.