Conrail

October 15,1996. CSX and conrail announce a friendly project of $8.3billion spinal fusion oWould take a crap $8.6billion in revenues and 68% of the eastern mrkt oCSX would have to sully 90.5 million conrail percentages (acquisition shares) ?Including 1.3 mill common shares owned by mgmt and directors oTwo tiered passing play ?Front end CSX would pay $92.5 per share in change for 40% of contrails acquis. Shares oTo gain controller of the decline CSX would acquire 19.7% of the shares foremost offer ?Back end submit 20.3% of conrail shares in second stage CSx would exchange shares in the ratio of 1.85619: 1 for the be 60% Force the remaining shareholders to accept force spine off value of $86.78 in the form of a stockpile swap, thereof saving cash oDerived from exchange ratio and the concentrate csx stock price of $46.75 oCSX : Conrail oBased on closing prices when Norfolk announced its bid, the mix value of CSX offer was $87.67 per share. ? r epresented 23.5% exchange allowance everywhere contrails pre announcement stock price of $71.00 per share. o 8 days later norfolks hostile bid of $9.1billion for conrail oRail revenues of $7.8 billion and 61% of eastern mrkt o$ light speed per share CASH quick offer positiveing 9.1 billion o40.8% premium over contrails pre merger stock price o14.

1% premium over CSX blended offer oConditions to be me before proceedings with merger ?Conrail had to end merger with csx and suspend poison pill ?Shareholders had to tender majority of their acquis. Shares ?Norfolk had to cut back sufficient financing t o complete acquisition ?Had jp morgan and M! errill lynch to advice them on contract Agreed to pay them each .125% of the total deal value upon consummation of merger. CSx dismissed norfolks bid as a nonbid within hours oCsx conrail merger effectively reject contrails board of directors compliment of any competing offers prior to mid april 97 orequired time delays in Norfolks proposal implied that, utilize a 2% reject rate per month, the...If you want to get a full essay, lay it on our website: BestEssayCheap.com

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