Acquisition of Consolidated Rail Corporation (A)

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Case

Reference no. 9-205-S01

Spanish language

Subject category: Finance, Accounting and Control

Authors: Benjamin C Esty (Harvard Business School); Mathew Mateo Millett (Harvard Business School)

Published by: Harvard Business Publishing

Originally published in: 2003

Version: 21 May 2001

Length: 18 pages

Data source: Published sources

Topics: Management controls; Acquisitions; Game theory; Valuation; Mergers; Auctions; Competitive bidding; Deregulation

Share a link: https://casecent.re/p/96947

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Abstract

This is a Spanish version. On 15 October 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 USD8.3 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.

Location:

United States

Industry:

Railroads

Size:

USD19 billion revenues, 77,500 employees

Other setting(s):

1996-1997