Merger Prompts Conrail to Cancel Sale Plans

Conrail said it has dropped plans to sell some freight service operations as a result of its $10.3-billion merger with CSX Corp. The Philadelphia-based railroad also said it has called off negotiations with a prospective buyer for its branch lines in southern New Jersey. In January, Conrail announced plans to sell its freight service operations in six clusters of lines to short line or regional railroads. A five-month battle for Conrail ended in March when friendly bidder CSX, based in Richmond, Va., raised its bid and agreed to negotiate a division of Conrail’s assets with hostile suitor Norfolk Southern Corp. of Norfolk, Va. Conrail’s stock fell 12.5 cents to close at $112.875 on the New York Stock Exchange.