Conrail Shareholders Reject Csx Offer

Sat., Jan. 18, 1997

From Staff And Wire Reports

With a sweetened offer from Norfolk Southern on the table, Conrail shareholders Friday rejected a proposal that would have let CSX Corp. proceed with its $9.4 billion takeover.

Rival suitor Norfolk Southern Corp. called the outcome a strong endorsement for its bid and said it would go ahead with plans to buy almost 10 percent of Conrail’s stock for $115 a share as part of a $10.5 billion hostile bid.

The vote Friday, while a setback for CSX, does not stop its takeover fight. CSX already has purchased almost 20 percent of Conrail’s stock for $110 a share. CSX also is helped by an agreement with Conrail that prohibits Conrail from considering other offers through 1999.

Whichever side succeeds, a takeover would create the nation’s third-largest railroad.

The loser in the bidding could find itself locked out of the East Coast, where Conrail is concentrated.

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Conrail Shareholders Reject Csx Offer

Jesse Tinsley

Jim Meehan

Molly Quinn

Rob Curley

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