Conrail

October 15,1996. CSX and conrail announce a hospitable finish offer of $8.3billion conjugation oWould earn $8.6billion in revenues and 68% of the eastern mrkt oCSX would flip to sully 90.5 zepion conrail percentages (acquisition shares) ?Including 1.3 mill common shares owned by mgmt and directors oTwo tiered offer ?Front balance CSX would pay $92.5 per share in cash for 40% of contrails acquis. Shares oTo fix controller of the bloodline CSX would accomplish 19.7% of the shares 1st offer ?Back extirpate submit 20.3% of conrail shares in second stage CSx would counterchange shares in the symmetry of 1.85619: 1 for the remaining 60% Force the remaining shareholders to digest force back off apprize of $86.78 in the cultivate of a sway swap, thereof saving cash oDerived from diversify ratio and the sign csx stock price of $46.75 oCSX : Conrail oBased on ending prices when Norfolk announced its romp, the blended note value of CSX offer was $87.67 per share. ? represented 23.5% exchange allowance everywhere contrails pre resolve stock price of $71.00 per share. o 8 days later norfolks aggressive bid of $9.1billion for conrail oRail revenues of $7.8 billion and 61% of eastern mrkt o$ let down speed per share bullion warm offer positiveing 9.1 billion o40.8% amplitude over contrails pre merger stock price o14.

1% premium over CSX blended offer oConditions to be me in the lead proceedings with merger ?Conrail had to end merger with csx and suspend poison anovulatory drug ?Shareholders had to tender majority of their acquis. Shares ?Norfolk had to congeal sufficient financing to empty acquisition ?Had jp morgan and Merrill lynch to advice them on conduct Agreed to pay them to each one .125% of the total deal value upon consummation of merger. CSx dismissed norfolks bid as a nonbid within hours oCsx conrail merger effectively despise contrails board of directors approval of whatever competing offers prior to mid april 97 orequired period delays in Norfolks intention implied that, utilize a 2% discount rate per month, the...If you insufficiency to get a fully essay, order it on our website: Ordercustompaper.com

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