Norfolk Southern Raises Bid for Conrail

Norfolk Southern Corp. raised its hostile all-cash bid for Conrail Inc. to $10.5 billion, widening the gap from a smaller offer by CSX Corp. Earlier, CSX added $870 million to its cash-and-stock bid for Conrail. CSX, with its $9.35-billion offer, had been looking to dissuade shareholders from siding with what was then a $10-billion Norfolk Southern offer. Conrail said the firm would not comment on Norfolk, Va.-based Norfolk Southern’s action. Philadelphia-based Conrail is siding with CSX, of Richmond, Va. But shareholder discontent at the lower CSX bid had created a threat to approval of the next step in the merger. CSX shares fell $1.50 to close at $43.75 on the news. Conrail shares gained $1.75 to $100.75 and Norfolk Southern stock gained $2.125 to $88.375. All trade on the NYSE.