Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: WEDNESDAY, September 28, 1994 TAG: 9409290023
SECTION: BUSINESS PAGE: B-8 EDITION: METRO
SOURCE: GREG EDWARDS STAFF WRITER
DATELINE: LENGTH: Medium
The New York-based newspaper originally reported in early August that the two railroads were discussing the possibility of a merger. Neither Norfolk Southern nor Conrail, however, officially confirmed whether they were talking about merging.
NS spokesman Bob Fort at the railroad's Norfolk headquarters declined comment Tuesday about the report that the rumored merger talks were off.
"There's nothing to comment on, really, at this point," he said.
Railroad union officials in Roanoke said they had no direct knowledge about merger talks and had no reports from their members of Conrail officials visiting any NS facilities in the area.
The Journal of Commerce concluded that the rumored merger talks are off based on a statement from Conrail on Monday announcing that the Conrail board had elected David M. LeVan, a longtime Conrail employee, as the company's new president and chief operating officer.
At the same meeting last week when it appointed LeVan, the company had reviewed with senior management its "strategic direction," the press release said. "The board agreed that the strategy presented provides a sound foundation upon which to base Conrail's near-term future as an independent entity," the Conrail statement continued.
The Journal of Commerce interpreted the statement about independence as meaning the unconfirmed merger talks are off. Wall Street securities analysts, however, apparently are divided on what the company's statement has to say about a possible Conrail-NS merger.
One analyst had heard that a high-ranking Conrail executive had confirmed to The Journal of Commerce that it should take the company's news release to mean the merger talks were off.
Norfolk Southern's stock closed Tuesday in trading on the New York Stock Exchange at $61.75 per share, up $1.375 on trading of 354,500 shares. Conrail's stock closed at $50, up 87.5 cents on trading of 575,400 shares.
The possible merger of Conrail and NS had been viewed by railroad watchers as a plus for Roanoke because it would increase business for the NS shops in Roanoke and increase rail traffic through the city.
by CNB