Article: NORFOLK SOUTHERN APPEAL DENIED IF SHAREHOLDERS OK CSX DEAL, NORFOLK SOUTHERN NEXT COULD TAKE ITS FIGHT TO FEDERAL REGULATORS.(BUSINESS)

Byline: CHRISTOPHER DINSMORE, STAFF WRITER

With its legal setback confirmed by an appeals court Wednesday, Norfolk Southern must take its bid to steal Conrail Inc. away from CSX Corp. to Conrail shareholders.

The federal appeals court's decision cleared the way for CSX to begin buying up to 20 percent of Conrail's stock today. Owning the stock will give CSX the upper hand in an upcoming Conrail shareholder vote on the merger.

Norfolk Southern had hoped the 3rd U.S. Circuit Court of Appeals in Philadelphia would block the sale of Conrail stock to CSX.

Norfolk Southern's best hopes to win Conrail now lie with the railroad's shareholders. ...

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