ROANOKE TIMES
Copyright (c) 1997, Roanoke Times
DATE: Tuesday, March 18, 1997 TAG: 9703180055
SECTION: BUSINESS PAGE: B-6 EDITION: METRO
DATELINE: HARRISBURG, PA.
SOURCE: ASSOCIATED PRESS
Pennsylvania's governor wants to make sure that as CSX and Norfolk Southern divide up Conrail, his state doesn't lose.
After meeting with top railroad executives, Gov. Tom Ridge and Philadelphia Mayor Edward Rendell announced a special panel Monday to watch over Pennsylvania jobs as details of the proposed Conrail takeover are negotiated.
Ridge and Rendell held a news briefing after an hour of private discussions with chief executives John Snow of CSX Corp. and David Goode of Norfolk Southern Corp. at the governor's residence.
``Our number-one priority is to work with them as best we can to find a win-win situation,'' Ridge said.
The two Virginia-based companies want to control the future of Conrail's 11,000-mile railway and the repair yards, offices and other facilities that employ more than 8,000 Pennsylvanians.
``We're very resolute in the fact that Pennsylvania is not going to come out of this the loser,'' Rendell said.
The panel, which will work in tandem with Pennsylvania's congressional delegation, is expected to begin its work within two weeks.
Conrail was created nearly 25 years ago by the U.S. government to run Penn Central and five other failed Northeast railroads.
Last fall, Conrail and Richmond-based CSX announced a ``merger of equals'' that would have kept the corporate headquarters in Philadelphia. Norfolk-based Norfolk Southern mounted a hostile takeover drive and outbid CSX enough to persuade Conrail shareholders to block the merger.
The proposed $10.5 billion deal, which requires federal approval, calls for CSX to buy Conrail for $115 a share and divide it with Norfolk Southern according to a separate agreement that still is being negotiated.
Ridge and Rendell stressed that the negotiations could take a year or more, and that the working group would operate largely in secret until an agreement is reached.
A key concern of theirs is the status of the more than 2,000 Conrail employees around Philadelphia. U.S. Sen. Arlen Specter said last week that Conrail employees and city officials should consider suing CSX if it intends to lay off workers or move Conrail's headquarters out of Philadelphia.
Rendell said financial incentives or real estate might be available if the new owners are willing to expand operations in Philadelphia, and legal action remains a possibility if negotiations are unsuccessful.
``There are going to be no quick knockouts here,'' the mayor said. ``This is going to be a slow process. We intend to do must of our discussions in private. You won't hear from us for a while.''
LENGTH: Medium: 57 lines ILLUSTRATION: PHOTO: (headshots) Goode, Snow. color.by CNB