Conrail Case Study 1. Why does CSX want to buy Conrail? Why can CSX justify paying a premium to acquire Conrail? The Stagger’s Rail Act of 1980 has created a deregulated environment in which acquisitions are used to improve the competitive positioning of existing companies within the railroad industry. CSX is interested in Conrail for a couple of reasons. Primarily‚ CSX-Conrail merger would result in more than $8.5 billion in revenues and nearly 70% of the Eastern market. The combined entity would
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The Acquisition of Consolidated Rail Corporation (A) CASE 4 Group 3: Antonio Carlos Teles Caleia #1028 Federica Carcani #2258 Edoardo Covicchio #2259 Leandro José Pereira Domingues #1023 Francesca Romana Gambini #2260 Mergers‚ Acquisition and Restructuring (TB) Prof. Josè Neves de Almeida Q1. The rationale behind the intention of CSX to buy Conrail is mainly to anticipate a proposal from the other big player in the market Norfolk Southern. Both CSX and Norfolk Southern have basically the same
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Study of Mergers and Acquisitions within the EU Aviation Sector: A Case study of British Airways and Iberia. Key words: Mergers and Acquisitions‚ Aviation Sector‚ EU‚ Network Carriers‚ Strategies. Aims of Research: The Aim of this research is to address the following issues: 1) What are the main motives for engaging in Merger and Acquisition activity for Aviation Market? Did they reach their goals? 2) What are the consequences of Airlines Company’s merger and acquisition? How did
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Target Corporation: Report on Long-term Financing Policy and Capital Structure with an Acquisition Analysis Introduction This report will be based on the Target Corporation‚ and will consist of two sections: 1) long-term financing policy and capital structure‚ and 2) an acquisition analysis. The first section will include: Target’s most recent long-term financing decision; an analysis of the economic‚ business‚ and competitive background in which the financing occurred; Target’s book value and
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2300 | 0.0750 | 16.78% | 16.03% | 90‚500‚000 | 0.35 | Total gain in Operating imcome (in million) | 1997 | 1998 | 1999 | 2000 | 2001 | Terminal value | CSX | 0 | 240 | 521 | 730 | 752 | 5620.90 | Norfolk Southern | 0 | 231 | 429 | 660 | 680 | 5375.29 | NPV(in million) | 1997 | 1998 | 1999 | 2000 | 2001 | Terminal | Total | CSX | 0 | 114.3997 | 212.6677 | 255.1742 | 225.1033 | 1682.557 | 2489.902 | Norfolk Southern | 0 | 111.5378 | 178.5319 | 236.7287 | 210.2153 | 1661.717 | 2398
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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
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toward and evaluate the motivations behind the European acquisition of African colonies in the period 1880 to 1914 During the late 1800’s‚ Europe was looking for a way to improve themselves as a whole. With growing population and a steady decline in available work‚ something new had to be done. Countries looked towards Africa to serve as new colonies for the Europeans in order to better their own countries. During the European acquisition of African colonies in the period 1880 to 1914 Europe’s
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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-
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Title Brand Image Attitude and Perceptions towards a Brand during the Course of an Acquisition in the clothing industry in the UK Brand is a powerful tool to attract more consumers to buy particular products. In a developed country like UK‚ clothing industry is one of the major industries that substantially contribute to the economy. As consumer’s decision making plays a big role in any market‚ it is vital to study how consumers make their choices when purchasing clothes to evaluate the impact
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Executive Summary HSBC - North America stands proudly as one of the leading financial services companies in the United States and work with the common goal of meeting the needs of more than 68 million customers. In the United States HSBC operates as HSBC Bank USA‚ N.A. and HSBC Finance Corporation. HSBC Bank USA‚ N.A. has more than 460 bank branches throughout the United States‚ with approximately 380 in New York State as well as branches in Connecticut‚ Washington D.C.‚ Florida‚ New Jersey‚ Maryland
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