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  • April 1998 (Revised July 2005)
  • Case
  • HBS Case Collection

Acquisition of Consolidated Rail Corporation (A), The

By: Benjamin C. Esty, Lori A. Flees and Mathew M Millett
  • Format:Print
  • | Language:English
  • | Pages:17
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Abstract

On October 15, 1996, Virginia-based CSX and Pennsylvania-based Consolidated Rail (Conrail), the first and third largest railroads in the eastern United States, announced their intent to merge in a friendly deal worth $8.3 billion. This deal was part of an industry-wide trend toward consolidation and promised to change the competitive dynamics of the Eastern rail market. Students, as shareholders, must decide whether to tender shares into the front-end of a two-tiered acquisition offer. To make this decision, they must value Conrail as an acquisition target and understand the structure of CSX's offer.

Keywords

Valuation; Mergers and Acquisitions; Decisions; Contracts; Rail Industry; United States

Citation

Esty, Benjamin C., Lori A. Flees, and Mathew M Millett. "Acquisition of Consolidated Rail Corporation (A), The." Harvard Business School Case 298-006, April 1998. (Revised July 2005.)
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About The Author

Benjamin C. Esty

Finance
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Related Work

    • June 1998 (Revised May 2001)
    • Faculty Research

    Acquisition of Consolidated Rail Corporation, The (A and B) TN

    By: Benjamin C. Esty and Mathew M Millett
    • March 2003 (Revised October 2004)
    • Faculty Research

    Acquistion of Consolidated Rail Corporation (A), The

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Related Work
  • Acquisition of Consolidated Rail Corporation, The (A and B) TN By: Benjamin C. Esty and Mathew M Millett
  • Acquistion of Consolidated Rail Corporation (A), The By: Benjamin C. Esty
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