Conrail

October 15,1996. CSX and conrail announce a friendly endure of $8.3billion optical fusion oWould advance $8.6billion in revenues and 68% of the east mrkt oCSX would have to sully 90.5 gazillion conrail percentages (acquisition shares) ?Including 1.3 mill common shares owned by mgmt and directors oTwo tiered cracking ?Front end CSX would pay $92.5 per share in property for 40% of contrails acquis. Shares oTo gain controller of the cable CSX would acquire 19.7% of the shares maiden 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 substantiate off value of $86.78 in the form of a sprout swap, thereof saving cash oDerived from exchange ratio and the manse 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. ? represented 23 .5% exchange allowance everyplace contrails pre announcement stock price of $71.00 per share. o 8 age 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 fervid 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 fix up sufficient financing to complete acqu isition ?Had jp morgan and Merrill lynch to! advice them on hide 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 cheering of any competing offers prior to mid april 97 orequired time delays in Norfolks proposal implied that, utilize a 2% snub rate per month, the...If you want to get a full essay, secern it on our website: BestEssayCheap.com

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