-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, DKbdUGlnZRQswlEKJaZf/zi71gGvi47mBRV1SE+98kXmx1BT9oTtqoqjf+aGOBbi VIPJyZP0Lnos6Lv9BmYqqg== 0000950172-96-000759.txt : 19961115 0000950172-96-000759.hdr.sgml : 19961115 ACCESSION NUMBER: 0000950172-96-000759 CONFORMED SUBMISSION TYPE: DFAN14A PUBLIC DOCUMENT COUNT: 1 FILED AS OF DATE: 19961113 SROS: NYSE SUBJECT COMPANY: COMPANY DATA: COMPANY CONFORMED NAME: CONRAIL INC CENTRAL INDEX KEY: 0000897732 STANDARD INDUSTRIAL CLASSIFICATION: RAILROADS, LINE-HAUL OPERATING [4011] IRS NUMBER: 232728514 STATE OF INCORPORATION: PA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: DFAN14A SEC ACT: 1934 Act SEC FILE NUMBER: 001-12184 FILM NUMBER: 96662420 BUSINESS ADDRESS: STREET 1: TWO COMMERCE SQ STREET 2: P O BOX 41417 CITY: PHILADELPHIA STATE: PA ZIP: 19101-1417 BUSINESS PHONE: 2152094434 MAIL ADDRESS: STREET 1: P.O. BOX 41429 STREET 2: 2001 MARKET STREET CITY: PHILADELPHIA STATE: PA ZIP: 19101-1429 FILED BY: COMPANY DATA: COMPANY CONFORMED NAME: NORFOLK SOUTHERN CORP CENTRAL INDEX KEY: 0000702165 STANDARD INDUSTRIAL CLASSIFICATION: RAILROADS, LINE-HAUL OPERATING [4011] IRS NUMBER: 521188014 STATE OF INCORPORATION: VA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: DFAN14A BUSINESS ADDRESS: STREET 1: THREE COMMERCIAL PL CITY: NORFOLK STATE: VA ZIP: 23510-2191 BUSINESS PHONE: 8046292680 DFAN14A 1 SCHEDULE 14A INFORMATION PROXY STATEMENT PURSUANT TO SECTION 14(A) OF THE SECURITIES EXCHANGE ACT OF 1934 Filed by the Registrant / / Filed by a Party other than the Registrant /X/ Check the appropriate box: / / Preliminary Proxy Statement / / Confidential, for Use of the Commission Only (as permitted by Rule 14a-6(e)(2)) / / Definitive Proxy Statement /X/ Definitive Additional Materials / / Soliciting Material Pursuant to Section 240.14a-11(c) or Section 240.14a-12 CONRAIL INC. (NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER) NORFOLK SOUTHERN CORPORATION (NAME OF PERSON(S) FILING PROXY STATEMENT, IF OTHER THAN THE REGISTRANT) Payment of Filing Fee (Check the appropriate box): /X/ No fee required. / / Fee computed on table below per Exchange Act Rules 14a-6(i)(1) and 0-11. (1) Title of each class of securities to which transaction applies: (2) Aggregate number of securities to which transaction applies: (3) Per unit price or other underlying value of transaction computed pursuant to Exchange Act Rule 0-11 (Set forth the amount on which the filing fee is calculated and state how it was determined): (4) Proposed maximum aggregate value of transaction: (5) Total fee paid: / / Fee paid previously with preliminary materials. / / Check box if any part of the fee is offset as provided by Exchange Act Rule 0-11(a)(2) and identify the filing for which the offsetting fee was paid previously. Identify the previous filing by registration statement number, or the Form or Schedule and the date of its filing. (1) Amount Previously Paid: (2) Form, Schedule or Registration Statement No.: (3) Filing Party: (4) Date Filed: TO CONRAIL SHAREHOLDERS Norfolk Southern's offer is 18% higher. CSX is offering inferior value - $93.14 per share, which is about $17 per share less than Norfolk Southern's offer.* It's a $110 all-cash offer for all shares. CSX is trying to coerce Conrail shareholders with its inferior, front- end loaded proposal. It protects shareholders' rights. CSX is tendering now for only 19.9% of the Conrail shares, and then will use those shares to try to swing the vote to "opt out" of the Pennsylvania law protecting shareholders' rights. It's free of market risks. CSX wants Conrail shareholders to bear significant market risk. You would have to wait until the back-end merger, which is subject to conditions and could take a year or longer, to receive 60% of the consideration. This would be paid in CSX stock, with no downside protection if the stock declines in price. It's free of regulatory risks. CSX wants Conrail shareholders to take significant regulatory risk. You would have to wait for Surface Transportation Board approval (if it comes) before receiving 60% of your consideration. It doesn't include any sweetheart deals. CSX is giving Conrail's CEO a 5-year contract with a more than 50% jump in his base salary, and a guarantee that he will be the next Chairman and CEO of CSX. * Based on the closing price of CSX common stock on November 11, 1996. Now Ask yourself, who's making the "hostile" offer Norfolk Southern or CSX? Here's How You Can Help Yourself and Protect Your Conrail Investment: * Vote NO on Norfolk Southern's GOLD proxy card on Conrail's proposals to "opt out" of Pennsylvania's Fair Value Statute and to adjourn the special meeting. * Tender into Norfolk Southern's superior offer. * Write to the Conrail Board and ask it why: -- It wants Conrail to pay $580 million in breakup fees--$6.35 per share -- to protect CSX's inferior offer. -- It doesn't take actions to remove its own roadblocks to the Norfolk Southern offer. -- It is trying to force the inferior CSX deal on Conrail's shareholders. [Graphic: Box with checkmark above the words "VOTE NO"] [Norfolk Southern Logo] Important: If you have any questions, please call our solicitor, Georgeson & Company Inc. toll free at 1-800-223-2064. Banks and brokers call 212-440-9800. November 13, 1996 [Norfolk Southern Corporation Letterhead] NEWS RELEASE FOR IMMEDIATE RELEASE November 13, 1996 Media Contact: Robert Fort (757) 629-2714 NORFOLK SOUTHERN SAYS CONRAIL DIRECTORS CONTINUE TO IGNORE FIDUCIARY DUTY NORFOLK, VA -- Norfolk Southern Corporation (NYSE:NSC) issued the following statement in response to the decision by the Conrail board to continue to support the substantially lower offer of CSX Corporation (NYSE:CSX): "We are not surprised that the Conrail board, given its actions in recent weeks, stubbornly continues to refuse to give Conrail shareholders the opportunity to accept what is clearly a better offer. "The Conrail board continues to ignore its fiduciary duty to shareholders. The CSX proposal is not a `strategic combination,' but a strategy to subvert the intent of state law and coerce Conrail shareholders into accepting an inadequate offer for their shares. "The CSX proposal is not free of conditions -- it requires Conrail shareholders to wait an indeterminant length of time for regulatory approval of the merger for an unknown return on 60 percent of the shares outstanding. The only meaningful conditions on Norfolk Southern's offer are those imposed by the Conrail Board of Directors. "We would again strongly urge all Conrail shareholders to reject a deal that: * offers $17 per share, or $1.5 billion less than Norfolk Southern; * transfers the risk of regulatory approval to Conrail shareholders; * attempts to coerce shareholders into accepting the offer through a discriminatory, front-end loaded structure; * with no economic justification, establishes significant financial obstacles to a superior alternative offer. "The self-serving actions of the Conrail board and management should be viewed with concern not only by Conrail shareholders and other Conrail constituencies, but by all investors. We believe that ultimately a combination of Norfolk Southern and Conrail will prove not only a better offer, but also a better railroad." # # # World Wide Web Site - http://www.nscorp.com -----END PRIVACY-ENHANCED MESSAGE-----