CSX Tender for Conrail Succeeds in 1st Phase

CSX Corp. said Conrail Inc. shareholders tendered it 85% of their shares, handing CSX a victory in the first phase of its planned $8.5-billion acquisition of the Philadelphia-based freight railroad. CSX’s successful tender easily enables it to buy, for $1.96 billion, the 19.9% of Conrail shares it says it needs to proceed with the merger. Richmond, Va.-based CSX has offered $110 in cash for 40% of Conrail shares and CSX shares currently worth $84.68 for each of the remaining 60%. The action moves CSX one step closer to completing the merger, which has been contested by Norfolk, Va.-based Norfolk Southern railroad.