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The Spokesman-Review Newspaper
Spokane, Washington  Est. May 19, 1883

Up Seeks Auction Of Santa Fe Pacific

Compiled From Wire Services

Union Pacific Corp. attacked Santa Fe Pacific Corp. on another front Wednesday by asking a judge to force an auction of the smaller railroad.

The lawsuit also seeks to invalidate Santa Fe’s “poison pill” takeover defense and its agreement to pay Burlington Northern Inc. a $60 million break-up fee if it backs out of their proposed merger.

Union Pacific filed the amended lawsuit in Delaware Chancery Court one day after boosting its hostile takeover bid for Santa Fe to $18.50 a share from $17.50 a share. Union Pacific values the cash offer at $3.6 billion. The litigation is pending in Delaware because the companies are incorporated there.

Santa Fe, which has agreed to be acquired by Burlington Northern for $3.8 billion, does not comment on pending litigation, spokeswoman Catherine Westphal said. Earlier in the day, Santa Fe Chairman Robert D. Krebs said the company’s board of directors would review Union Pacific’s new bid.