Executive Summary Conrail has received two acquisition bids from CSX and Norfolk Southern. Introduction Conrail and CSX‚ the nation’s first and third largest railroads‚ have decided to participate in a merger of equals. CSX has offered to acquire Conrail in a two tiered deal. The first 40% of tendered Conrail shares will be bought at a price of $92.50 while the remaining 60% will be acquired through a stock swap at a ratio of 1.8561921 (CSX:Conrail). In the midst of this offer‚ a hostile Bid comes
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In Tender Offer by Wendy Wasserstein‚ little action occurs in that no one dies or screams or cries. However‚ enormous changes take place within the characters. The subtle theme of the play underscores a specific shortcoming in the American lifestyle‚ the need for compassionate communication between a distanced father and daughter. Wasserstein demonstrates that the special ingredient in effective communication is dependent upon mutual understanding. The central conflict here involves the father
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The raising action of the play is when Lisa is irritated that Paul was not present during her dance recital. Lisa does not seem to be content with Paul’s apologies and she answers his questions in a very flat tone. ”How’d it go?”/”Good”/“Just good?”/“You don’t want to be sexy?/“I don’t care”. She refuses to go home claiming that she could not find her leg warmers. This situation makes an ordeal of what escalates the tension between Paul and Lisa. The tension escalates to a climax when Lisa goes ahead
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dramaturge‚ ultimately exiting the frame of the action to become its director. This surprising exit and her immediate crossing between the space of the action and the space of the theater is prefigured by her marginal position in the household‚ what Albee offers as an allegory for the "American Scene". In her many sardonic epigrams‚ Grandma will position herself—as an "old person—at the margins of human intercourse‚ a figure considered "obscene" in the social theater. For example‚ social intercourse is violently
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Copyright ©2002 Ian H. Giddy Corporate Financial Restructuring 3 Case Study: The Acquisition of Conrail Why merge Conrail and CSX? How was the CSX offer structured? How was Conrail’s resistance to an unfriendly bid structured? How would you‚ as a Conrail shareholder‚ react to the offer? What’s Conrail worth? Copyright ©2002 Ian H. Giddy Corporate Financial Restructuring 4 Gains from Conrail Acquisition? Rationale: Firm A should merge with Firm B if [Value of AB > Value of A + Value of
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CONRAIL CASE Question 1.a) Based on the information provided in the “A” case and especially in the Exhibit 7 the most that CSX should pay for Conrail should be $93.42 per share (calculations are attached hereto as Exhibit 1). I assumed that the correct or required discount rate to be used in the DCF analysis should be the CSX’s cost of equity which is 15.93%. Based in this analysis – which reflects the expected synergies arising from the deal - CSX could still justify an increase in its offer by
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Jake Young Byoung Park English 161 29 October 2010 Communicating a “Tender Offer” The main problem between the main characters in Wendy Wasserstein’s Tender Offer is a lack of respect and communication. Lack of communication is dangerous and damaging to a family. “It can lead to numerous family problems‚ including excessive family conflict‚ ineffective problem solving‚ lack of intimacy‚ and weak emotional bonding” (Peterson‚ and Green). The two main characters‚ Lisa and Paul‚ lived in the same
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Perspective: Conrail shareholder. 1. Why does CSX want to buy Conrail? How much should CSX be willing to pay? Some of the reasons why CSX wants to buy Conrail are‚ to increase the consolidation in the Railway industry. Further consolidation typically means lower cost for the consolidators fx because economies of scale and synergies and …. A consolidation also results in lower competition inside the industry‚ which typically follows with higher‚ or at least not lower‚ prices and therefore higher
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Acquisition of Consolidated Rail Corporation 1. CSX wanted to merge with Conrail‚ because the consolidated company would have more than $8.5 billion in rail revenue and almost 70 % of the Eastern market. Gain in Operating Income from Cost Reduction would bring additional $370 million by the year 2000. Total gain from revenue increase would result in additional $180 million. And from the operating income would reach $550 million. Another important point in CSX-Conrail merger is the better competitive position
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Conrail G455: Corporate Restructuring Team 7 1) Why does CSX want to buy Conrail? In an industry beset by limited options to consolidate domestic rail traffic‚ CSX looked at Conrail as an avenue to increase market share and gain access to the North East rail network. With air travel‚ road travel and trucking taking an increasing share‚ significant revenue growth became difficult. As Conrail became profitable‚ Congress explored ways of privatizing it‚ giving CSX an opportunity to acquire Conrail
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