-----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, OGmUbTjIZi+uYY6+ByXChw3LsFEb4B4v9z48S6MkwyZrqUppv5NQ3rHXxnPHvO6R kDNmoS5KQIUkbN/ZZLU81A== 0000950172-97-000007.txt : 19970108 0000950172-97-000007.hdr.sgml : 19970108 ACCESSION NUMBER: 0000950172-97-000007 CONFORMED SUBMISSION TYPE: SC 14D1/A PUBLIC DOCUMENT COUNT: 2 FILED AS OF DATE: 19970107 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: SC 14D1/A SEC ACT: 1934 Act SEC FILE NUMBER: 005-42777 FILM NUMBER: 97502195 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: SC 14D1/A BUSINESS ADDRESS: STREET 1: THREE COMMERCIAL PL CITY: NORFOLK STATE: VA ZIP: 23510-2191 BUSINESS PHONE: 8046292680 SC 14D1/A 1 SCHEDULE 14D1 AMENDMENT NO. 33 SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 -------------------------- SCHEDULE 14D-1 (Amendment No. 33) Tender Offer Statement Pursuant to Section 14(d)(1) of the Securities Exchange Act of 1934 -------------------------- Conrail Inc. (Name of Subject Company) Norfolk Southern Corporation Atlantic Acquisition Corporation (Bidders) COMMON STOCK, PAR VALUE $1.00 PER SHARE (INCLUDING THE ASSOCIATED COMMON STOCK PURCHASE RIGHTS) (Title of Class of Securities) 208368 10 0 (CUSIP Number of Class of Securities) SERIES A ESOP CONVERTIBLE JUNIOR PREFERRED STOCK, WITHOUT PAR VALUE (INCLUDING THE ASSOCIATED COMMON STOCK PURCHASE RIGHTS) (Title of Class of Securities) NOT AVAILABLE (CUSIP Number of Class of Securities) -------------------------- JAMES C. BISHOP, JR. EXECUTIVE VICE PRESIDENT-LAW NORFOLK SOUTHERN CORPORATION THREE COMMERCIAL PLACE NORFOLK, VIRGINIA 23510-2191 TELEPHONE: (757) 629-2750 (Name, Address and Telephone Number of Person Authorized to Receive Notices and Communications on Behalf of Bidder) -------------------------- with a copy to: RANDALL H. DOUD, ESQ. SKADDEN, ARPS, SLATE, MEAGHER & FLOM LLP 919 THIRD AVENUE NEW YORK, NEW YORK 10022 TELEPHONE: (212) 735-3000 This Amendment No. 33 amends the Tender Offer Statement on Schedule 14D-1 filed on October 24, 1996, as amended (the "Schedule 14D-1"), by Norfolk Southern Corporation, a Virginia corporation ("Parent"), and its wholly owned subsidiary, Atlantic Acquisition Corporation, a Pennsylvania corporation ("Purchaser"), relating to Purchaser's offer to purchase all outstanding shares of (i) Common Stock, par value $1.00 per share (the "Common Shares"), and (ii) Series A ESOP Convertible Junior Preferred Stock, without par value (the "ESOP Preferred Shares" and, together with the Common Shares, the "Shares"), of Conrail Inc. (the "Company"), including, in each case, the associated Common Stock Purchase Rights, upon the terms and subject to the conditions set forth in the Offer to Purchase, dated October 24, 1996 (the "Offer to Purchase"), as amended and supplemented by the Supplement, dated November 8, 1996 (the "First Supplement"), and the Second Supplement, dated December 20, 1996 (the "Second Supplement"), and in the revised Letter of Transmittal (which, together with any amendments or supplements thereto, constitute the "Offer"). Unless otherwise defined herein, all capitalized terms used herein shall have the respective meanings given such terms in the Offer to Purchase, the First Supplement, the Second Supplement or the Schedule 14D-1. ITEM 11. MATERIAL TO BE FILED AS EXHIBITS. Item 11 is hereby amended and supplemented by the following: (a)(80) Text of Presentation made to certain Company shareholders commencing January 7, 1997. SIGNATURE After due inquiry and to the best of its knowledge and belief, the undersigned certifies that the information set forth in this statement is true, complete and correct. Dated: January 7, 1997 NORFOLK SOUTHERN CORPORATION By: /s/ JAMES C. BISHOP, JR. ------------------------------------ Name: James C. Bishop, Jr. Title: Executive Vice President-Law ATLANTIC ACQUISITION CORPORATION By: /s/ JAMES C. BISHOP, JR. ------------------------------------ Name: James C. Bishop, Jr. Title: Vice President and General Counsel EXHIBIT INDEX Exhibit Number Description (a)(80) Text of Presentation made to certain Company shareholders commencing January 7, 1997. EX-99 2 EXHIBIT (A)(80) January 1997 [NORFOLK SOUTHERN LOGO] NORFOLK SOUTHERN SHAREHOLDER PRESENTATION NORFOLK SOUTHERN IS OFFERING CONRAIL SHAREHOLDERS SUPERIOR VALUE -------------------------------------------------------------------- NORFOLK SOUTHERN OFFER * Nominal value of $115.00 per share1 * 8.4BN total value2 * No equity risk - all cash * No synergy risk - all cash * Immediate value CSX OFFER * Nominal value of $97.62 per share3 * $7.0BN total value2 * Equity risk - 75% common and convertible stock * Trading discount risk - convertible stock * Synergy risk - 75% common and convertible stock ------------------ 1 Represents premium of 18% over CSX's offer 2 For remaining shares (not already owned by CSX) 3 Based on 25% cash/75% stock, reflects CSX 1/6/97 closing price of $41.75 CSX'S OFFER - MUCH LESS VALUE, REALLY HOSTILE TO SHAREHOLDERS -------------------------------------------------------------------- MUCH LESS VALUE EARLIEST VALUE RECEIPT DATE -------------------------------------------------------------------- CSX common $77.50 1 Spring 1997(?) ($41.75 x 1.85619) Convertible preferred $16.00 2 Spring 1997(?) ------ $93.50 x .75 ------ 75% equity component $70.12 25% cash component $27.50 January 1997 ($110 x 25%) ------ Nominal consideration $97.62 per Conrail share ====== REALLY HOSTILE * Hostile approach - coercive bid * Hostile structure - multi-tier, front-end loaded * Hostile currency with uncertain value for 75% of the bid * Terms of convertible preferred are not defined (i.e., mystery stock) * Subjects Conrail shareholders to unnecessary equity market risks ----------------- 1 Based on CSX 1/6/97 closing price of $41.75 2 Theoretical value CSX'S OFFER EXPOSES SHAREHOLDERS TO SIGNIFICANT EQUITY RISK FOR MOST OF THE CONSIDERATION RECEIVED -------------------------------------------------------------------- Assumed Resultant NS premium Assumed CSX convertible blended to CSX offer stock value value1 value value -------------------------------------------------------------------- $43.00 $16.00(?) $99.36 15.7% $42.50 $16.00(?) $98.67 16.6% $42.00 $16.00(?) $97.97 17.4% $41.50 $16.00(?) $97.27 18.2% $41.00 $16.00(?) $96.58 19.1% $40.50 $16.00(?) $95.88 19.9% $40.00 $16.00(?) $95.19 20.8% $39.50 $16.00(?) $94.49 21.7% $39.00 $16.00(?) $93.79 22.6% ----------------- 1 Convertible stock, theoretically worth $16 per share, will be received for 75% of the Conrail shares currently outstanding and not owned by CSX. This convertible preferred is likely to trade at a significant discount to par. SUMMARY OF THE CSX OFFER -------------------------------------------------------------------- THE CSX OFFER TO CONRAIL SHAREHOLDERS * Provides less value * Includes CSX stock subject to market risks - Equity market fluctuations - Bears risk of regulatory approval - Bears risks of realization of promised synergies * Includes undefined convertible preferred stock - Uncertain value prior to acquisition - Market risk after acquisition * Requires CSX shareholder approval of a dilutive transaction * Seeks to preclude Conrail shareholders from accepting a superior all-cash offer * Provides an undesirable template for other coercive merger transactions A VOTE AGAINST WILL INCREASE THE VALUE OF YOUR CONRAIL SHARES -------------------------------------------------------------------- A VOTE AGAINST THE PROPOSED CSX TRANSACTION WILL 1. FORCE CSX TO INCREASE ITS BID FOR CONRAIL AGAIN OR 2. FORCE THE CONRAIL BOARD TO ACCEPT NORFOLK SOUTHERN'S SUPERIOR ALL-CASH $115 OFFER FOR ALL CONRAIL SHARES CONRAIL SHAREHOLDERS SHOULD VOTE AGAINST: 1. Opting out of the Pennsylvania statute requiring fair value for all shareholders, and 2. Allowing Conrail management to adjourn the meeting (if it appears that the vote will be unfavorable) -----END PRIVACY-ENHANCED MESSAGE-----