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Re: PC: PC in the news...
- Subject: Re: PC: PC in the news...
- From: "Peter King" <fshobby@xxxxxxxxxxx>
- Date: Tue, 28 Aug 2001 07:59:52 -0500
--- Original Message ---
From: "Bill K." <pontiac -AT- dreamscape.com>
>Okay.. without even going into what Conrail did.. just to apply
>common sense to the whole thing (which I know can be difficult when
>to railroads as they often make decisions with little or no apparent
>sense)... if Conrail was in fact going broke, why would CSX and NS
>take it over and assume the company's debts, etc.?
Happens all the time. A struggling company with a potentially
valuable, but mismanaged, property gets bought at a bargain-basement
price. Even in the railroad world.
HOWEVER, that's not what happened with Conrail. CSX and NS not only
fought over Conrail, they paid a hefty premium for it. (That is, they
offered substantially more than market price for the stock.) If
Conrail was losing money, they would NOT have paid a premium for it.
Peter King in NY
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