CSX Proposes Concessions to Rival Norfolk

CSX Corp. Chairman John Snow said that if his company wins Conrail Inc., rival bidder Norfolk Southern will be offered control of a significant share of rail lines to New York, Philadelphia and Baltimore. Sharply switching strategy, Snow said that he and Conrail Chairman David LeVan are committed to consolidating the big three Eastern railroads into “two strong systems” that would be equal competitors. Richmond, Va.-based CSX and Philadelphia-based Conrail on Oct. 14 announced an agreement to merge. Norfolk, based in Norfolk, Va., nine days later made a hostile takeover bid for Conrail. Meanwhile, the official results of last week’s Conrail shareholder vote showed that the proposal to allow CSX to buy an additional 20.1% of Conrail stock was defeated.