CF LOOKS TO REDUCE DEBT THROUGH DEPOSITARY SHARE OFFER

CF LOOKS TO REDUCE DEBT THROUGH DEPOSITARY SHARE OFFER

Consolidated Freightways Inc. Wednesday filed a registration statement with the Securities and Exchange Commission to register a public offering of 6 million depositary shares, each representing one-tenth of a share of conversion preferred stock.

The initial public offering price of the shares is expected to be based on the company's common stock price at the time of the offering.Each depositary share will automatically convert into one share of common stock after three years and can be called by the company for common stock at any time at the call prices to be stated in the prospectus of the offering.

Donald E. Moffitt, president and chief executive officer, said the public offering was consistent with CF's previously stated goal of providing new equity for the company.

"This will provide the company with increased flexibility and is an integral part of the company's long-term financial planning," he said.

The proceeds of the offering, expected to be approximately $100 million, will be used by CF to reduce debt and for other corporate purposes.

The principal underwriters, led by Goldman, Sachs & Co. and Salomon Bros. Inc., will be granted the option to purchase up to an additional 900,000 depositary shares solely to cover over-allotments, if any.