Acquisition of Consolidated Rail – Case Study 1. Background Info - Conrail 1.1. Formed from the remains of the six bankrupt North-eastern railroads in 1973 1.2. Earned its first profit in 1981- $39.2m on revenues of $4.2bn. Privatised through an IPO in 1987 1.3. Major player in North-eastern cities and their connection with major Mid-western hubs 1.4. In 1995‚ had 23‚510 employees‚ operated 10‚701 miles of track and controlled 29.4% of the eastern rail freight market 1.5. Financial indicators-
Premium Stock market Stock Discounted cash flow
and account for cash flows when a company has subsidiaries operating in foreign countries. It gives an example of a consolidated cash flow statement from a US based company and its two subsidiary companies. The reference explains how excess cash should be disclosed. A majority of the reference deals with the local currency and how it should be shown with the parent company‚ in this case a US company based on the dollar. So for both foreign companies it needs to be formatted with both local and US.
Premium Corporation Subsidiary Cash flow statement
The Acquisition of Consolidated Rail Corporation 1. Why does CSX want to buy Conrail? How much should CSX be willing to pay for it? 1‚ If the CSX buys Conrail‚ this combination would create the second largest rail system in the United States and the largest rail system east of the Mississippi River. The new company would get the $8.5B in rail revenue and almost 70% of the Eastern Market‚ which means it would have monopoly position in the Eastern Rail Market. 2‚ The combined rail networks would
Premium Norfolk Southern Railway Stock market Stock
The Agency Problem and Control of the Corporation‚ Mergers and Acquisitions The Agency Problem and Control of the Corporation Corporate managers are the agents of shareholders. This relation creates a problem for shareholders who must find ways to induce managers to pursue shareholders interests. Financial managers do act in the best interest of the shareholders by taking action to increase the stock value. However‚ in large corporations ownership can be spread over a huge number of stockholders
Premium Mergers and acquisitions Stock
“THE CONSOLIDATED LIFE CASE: CAUGHT BETWEEN CORPORATE CULTURES” It all started so positively. Three days after graduating with his degree in business administration‚ Mike Wilson started his first day at a prestigious insurance company – Consolidated Life. He worked in the Policy Issue Department. The work of the department was mostly clerical and did nit require a high degree of technical knowledge. Given the repetitive and mundane nature of the work‚ the successful worker had to consistent and
Premium Management
A guide to Consolidated accounts A SIMPLE GUIDE TO CONSOLIDATED ACCOUNTS This is a basic guide prepared by the Technical Advisory service for members and their clients. It is an introduction only and should not be used as a definitive guide‚ since individual circumstances may vary. Specific advice should be obtained‚ where necessary. Requirement to Prepare The Companies Act 2006 gives exemption from the requirement to prepare group accounts to small groups but not medium sized groups
Premium Balance sheet Generally Accepted Accounting Principles
(Northouse‚ 2009) In the present case (Consolidated Life)‚ Rick Belkner (V.P)‚ Jack Greenly (Senior V.P) and Mike Wilson (Supervisor) all exhibit different management style and approaches‚ which quite clearly differentiates them not only as a manager but also as individuals with different conditioning and thought process (Zastrow‚ 2008). The case study clearly establishes Rick as a hands-off leader‚ one who allows the members to make the decisions. As seen in the case study he doesn’t really bother
Premium Management Leadership Organizational studies
Think back on your career and the managers you have had. I am sure that you have had good managers and others who were maybe not so great. When I ask people to list what made the good managers “good”‚ most of the examples they give me are to do with behaviour‚ or style. One of the interesting things about style is that managers with the most flexibility in style get the best outcomes from their people. Leadership style is not about good/bad‚ right/wrong: leadership style depends on the task‚ people
Premium Leadership Management
Consolidated Products Case Analysis Abstract This brief paper’s objective is to analyze the managerial behavior of two managers‚ Ben Samuels and Phil Jones‚ who worked for Consolidated Products plant. The analysis will concentrate on how these individuals displayed their specific relation-driven behaviors‚ and specific task-oriented behavior‚ and the subsequent managerial grid model. In addition‚ this paper will describe and compare to what extent each manager used participative or inspirational
Premium Leadership Management
ADECCO SA’S ACQUISITION OF OLSTEN CORPORATION 1. How has Adecco been able to outperform its rivals in the staffing industry? What is the strategic and economic rationale for its acquisition of Olsten? 2. Evaluate Olsten’s strategic and financial conditions as of mid-1999‚ in particular its funding needs and resources. 3. Based on Adecco’s pro forma estimates of the staffing business of Olsten in Exhibit 13‚ what is your estimate of total enterprise value? For this calculation make the following
Premium Finance Capital structure Money