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Conrail board OKs deal
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March 4, 1997: 6:36 a.m. ET
$10.5 billion offer from CSX could bring protracted battle to an end
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NEW YORK (CNNfn) - Conrail Inc.'s board late Monday approved a plan to be acquired by CSX Corp. for $115 per share, or $10.5 billion -- matching the offer previously received from rival Norfolk Southern Corp.
As part of the plan, after buying Conrail, CSX would then sell much of Conrail's Northeastern rail routes to Norfolk Southern. The two railroads would then negotiate with federal regulators for approval of two new freight rail systems in that region.
The specific details of how Conrail's routes would be split up have not been worked out, but both sides expressed interest in settling the matter quickly.
The board approval should end a protracted battle that has gone on since last fall. The $115 per share settlement negotiated by Conrail arose from a desire to match an offer made by Norfolk Southern, which shareholders earlier rejected.
Splitting Conrail would not affect the number of operating jobs in Pennsylvania and New Jersey, but management jobs could be eliminated, the company said.
There was no estimate of the number Monday, but the board acknowledged the problem by taking steps to assure generous severance packages for those who don't find work at Norfolk Southern or CSX.
The Philadelphia-based Conrail operates an 11,000 mile freight network and employs about 3,000 people in the Northeast region.
In trading Monday, Conrail jumped 7-1/8 to 111-5/8, while CSX gained 2-7/8 to 49 and Norfolk Southern (NSC) rose 2-3/4 to 93-7/8. 
-- Randy Schultz
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