Re: PC: PC in the news...

["Peter King" <fshobby@xxxxxxxxxxx>]

--- Original Message ---
From: "Bill K." <pontiac -AT- dreamscape.com>

>Okay..  without even going into what Conrail did..  just to apply 
some
>common sense to the whole thing (which I know can be difficult when 
it comes
>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 
want to
>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