Eight days after CSX announced that it would buy Consolidated Rail (Conrail) for $ 88.65 per share, Norfolk Southern has made a hostile $ 100 per share Conrail. Over the next few months, buyers have increased their application in the exchange criticism in the popular press, prompting analysts say this is one of the nastiest battles absorption 1990s. The case is set in January 1997, just before the Conrail shareholders scheduled to vote on the proposed transaction with CSX. It analyzes the trend of consolidation in the industry train U.S. bidding war for Conrail, and various provisions of the anti-absorption of the laws of Pennsylvania, which limit the market for corporate control. It also examines the strategic and financial implications of a bidding war and challenges the assumption that the failure to acquire a zero net present value of the effort. Finally, it examines the nature and economic framework for the regulation of the market for corporate control. "Hide
by Benjamin C. Esty, Mathew Mateo Millett Source: HBS Premier Case Collection 17 pages. Publication Date: April 13, 1998. Prod. #: 298095-PDF-ENG
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