Conrail

October 15,1996. CSX and conrail announce a friendly passport of $8.3billion amalgamation oWould attain $8.6billion in revenues and 68% of the easterly mrkt oCSX would have to sully 90.5 trillion conrail percentages (acquisition shares) ?Including 1.3 mill common shares owned by mgmt and directors oTwo tiered lead ?Front end CSX would pay $92.5 per share in hard currency for 40% of contrails acquis. Shares oTo gain controller of the birth CSX would acquire 19.7% of the shares first 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 stay 60% Force the remaining shareholders to accept force patronise off value of $86.78 in the form of a trite swap, thereof saving cash oDerived from exchange ratio and the business firm csx stock price of $46.75 oCSX : Conrail oBased on closing prices when Norfolk announced its bid, the intermingle 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 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 adoring 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 rate sufficient financing to c omplete acquisition ?Had jp morgan and Merr! ill lynch to advice them on overlay 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 boon of any competing offers prior to mid april 97 orequired time delays in Norfolks proposal implied that, utilize a 2% price reduction rate per month, the...If you want to get a full essay, roll it on our website: BestEssayCheap.com

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