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Article: Conrail approves joint takeover by CSX and Norfolk Southern
- Article from:
- Weekly Corporate Growth Report
- Article date:
- March 17, 1997
- Author:
CopyrightCopyright Quality Services Company Mar 17, 1997. Provided by ProQuest LLC. (Hide copyright information)
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The Deal: Conrail Inc.'s board has formally approved a $10.5 billion takeover by CSX Corp. Conrail's shareholders will receive $115/share in all cash, nearly a third more than CSX's original bid, and 60 higher than Conrail's stock price when the bidding began. The transaction will force a breakup of Conrail's prized route system without input from Conrail's chairman and top managers.
Discussion: Conrail failed in its attempts to keep itself together in a friendly combination with CSX to fend off rival bidder Norfolk Southern CSX will now discuss an agreement, including a joint purchase of the Conrail shares, with Norfolk Southern. Norfolk has provided a plan for this split that calls for a ...