B&O SHAREHOLDERS GET
LESS THAN CSX OFFERRICHMOND, Va. - Two years ago, CSX Corp. offered minority shareholders of the Baltimore & Ohio Railroad $124 a share when the venerable railroad was merged into the parent.
Some objected and went to court. On Tuesday, after a two-week hearing, three appraisers appointed by the Circuit Court for Baltimore to determine the fair value of the stock concluded that the fair value was $112.44 a share.
" . . . the dissenting shareholders will receive $11.56 per share less than they were originally offered at the time the merger was proposed," said Mark G. Aron, senior vice president-law and public affairs, CSX Corp.
The Baltimore court still must accept the appraisers' recommendation.
ICC COST INDEX EXPECTS
RAIL RATES TO FALL 0.2 PERCENT
WASHINGTON - Railroad rates tied to the Interstate Commerce Commission's index of railroad costs are expected to drop by about 0.2 percent for the second quarter of 1990.
Each quarter the commission calculates a "Rail Cost Adjustment Factor" to adjust its index of rail costs for inflation and fuel price fluctuations. Recently, the commission added a mechanism to the index to allow productivity
gains made by railroads to be passed on to their customers.
For the second quarter of 1990, the commission calculated an adjustment factor of 1.054, a 0.2 percent reduction from the previous quarter. This means maximum rates for the 1990 second quarter cannot exceed 99.8 percent of the maximum rate levels allowed in the first quarter.
The index of railroad costs was created to allow railroad rates to respond more quickly to price changes.
MOODY'S MAY LOWER
XTRA INC. DEBT RATING
NEW YORK - Moody's Investors Service said Monday that it may cut the Baa2 rating on Xtra Inc. medium-term notes, in a shift from Moody's initial stance that called for either an upgrade or a downgrade.
About $260 million of debt is on review, including parent Xtra Corp. cumulative convertible preferred stock and Xtra Inc. medium-term notes, shelf registration and commercial paper.
"Moody's rating action was prompted by a successful proxy fight by a group of dissident shareholders for control of Xtra's board of directors," the rating agency said.
CSX SEEKS TO DROP
RF&P MERGER DEAL
RICHMOND, Va. - CSX Corp., which announced plans Feb. 20 to acquire all of the stock of RF&P Corp., now wants to terminate the merger agreement.
RF&P owns the Richmond, Fredericksburg & Potomac Railroad, a connecting line that runs essentially between Richmond and Alexandria, Va.
CSX said it asked the special committee of the board of directors of RF&P Corp. to agree to mutually terminate the merger agreement.
Since the announcement of the proposed merger, the Virginia Supplemental Retirement System replaced its representatives on the RF&P board who negotiated and endorsed the merger. With unanimous support no longer present,
CSX said it "must face reality."
MAY FALL TO CONRAIL
PHILADELPHIA - Consolidated Rail Corp. and CSX Transportation, a unit of
CSX Corp., said they agreed in principle for Conrail to acquire CSX Transportation's one-third interest in the Monongahela Railway Co.
The Monongahela includes rail lines between Millsboro and Waynesburg, Pa., and between Brownsville, Pa., and Fairmont, W.Va.
The transaction is subject to approval by the Interstate Commerce
Commission. Terms were not announced.
On Dec. 26, Conrail said it had completed the purchase of the Pittsburgh & Lake Erie Railroad Co.'s one-third ownership interest in the Monongahela, subject to ICC approval.
Conrail, which originally owned one-third of the Monongahela directly, would then own all of the carrier.