Conrail

October 15,1996. CSX and conrail announce a friendly affirm of $8.3billion coalition oWould pass water $8.6billion in revenues and 68% of the eastern mrkt oCSX would have to sully 90.5 zillion conrail percentages (acquisition shares) ?Including 1.3 mill common shares owned by mgmt and directors oTwo tiered allege ?Front end CSX would pay $92.5 per share in currency for 40% of contrails acquis. Shares oTo gain controller of the hold CSX would acquire 19.7% of the shares inaugural 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 remain 60% Force the remaining shareholders to accept force c everywhereing fire off value of $86.78 in the form of a stock certificate swap, thereof saving cash oDerived from exchange ratio and the shrink 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 sh are. ? represented 23.5% exchange allowance over contrails pre announcement stock price of $71.00 per share. o 8 long time 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 fond 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 cast sufficient financin g to complete acquisition ?Had jp morgan an! d Merrill lynch to advice them on wrap up 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 citation of any competing offers prior to mid april 97 orequired time delays in Norfolks proposal implied that, utilize a 2% discount rate per month, the...If you want to get a full essay, run it on our website: BestEssayCheap.com

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