The Railway Labor Executives’ Assn., an umbrella...

The Railway Labor Executives’ Assn., an umbrella group of railroad unions, said it plans to make an offer in September to buy Southern Pacific Railroad through a leveraged buyout with participation from management. The group has hired Drexel Burnham Lambert to assist in arranging financing. RLEA has contacted Southern Pacific management, but no executives have yet joined the group, a spokesman said. Santa Fe Southern Pacific Corp., parent of the Southern Pacific and Santa Fe railroads, has been ordered by the federal government to sell one of its railroads.