ROANOKE TIMES
Copyright (c) 1997, Roanoke Times
DATE: Tuesday, February 11, 1997 TAG: 9702110084
SECTION: BUSINESS PAGE: B-6 EDITION: METRO
NS launches battle for Conrail's board
NORFOLK- Norfolk Southern Corp. has started a proxy fight to seek control of Conrail Inc.'s board of directors and force it to consider the NS bid to acquire Conrail and its rail service to lucrative northeastern markets.
NS, which is fighting a bid by CSX Corp. that has been endorsed by the Conrail board, said it is nominating five candidates to the Conrail board and seeking to replace all but three of the directors. NS also proposed reducing the size of Conrail's board to eight from thirteen, and it wants to change the system of re-electing Conrail directors on a staggered basis to one that requires all directors to run for re-election annually.
NS, which has made a $10.32 billion hostile bid for Conrail, said it delivered the proposals to Conrail on Monday and will present them at Conrail's annual shareholders meeting. Conrail has scheduled the annual meeting - usually held in April or May - for Dec.19.
NS also said it will begin payment today for the 8.2 million shares of Conrail that were accepted last week for NS' 9.9percent tender offer of Conrail stock.
-Bloomberg News
T-bill rates mixed
The Treasury Department on Monday sold $13.1 billion in three-month bills at an average discount rate of 5.02 percent, up from 5 percent last week. An additional $13.2 billion was sold in six-month bills at an average rate of 5.07 percent, down from 5.08 percent.
The three-month bill rate was the highest since 5.06 percent Jan. 27. The six-month bill rate was the lowest since 4.99 percent Dec. 16.
The Federal Reserve said the average yield for one-year Treasury bills, the most popular index for adjustable-rate mortgages, fell to 5.53 percent last week from 5.62 percent.
-Associated Press
Briefly ...
* Catherine's, a retailer of plus-size women's clothing and accessories, will open its first Roanoke store Friday at Valley View Mall, between Shakers and the Olive Garden restaurants on the ring road. The store will carry name-brand and private-label clothing in women's, petites and plus-plus sizes. Catherines Stores Corp., based in Memphis, Tenn., operates 218 stores nationwide.
* Block Mortgage Co. has opened an office at 3568 Electric Road in Roanoke County. The company, which will offer first mortgages and home equity loans in the Roanoke Valley, is a venture of Block Financial Corp., which in turn is a subsidiary of H&R Block.
* Oil companies in the Roanoke area have donated $5,500 to fuel assistance programs in Roanoke and Bedford counties, according to Bob Carle of Marathon Oil Co. Recipients are chosen by social service agencies. Participants are Marathon, Texaco Inc., the Williams Energy Group, Citgo Petroleum Inc., Shell Oil Co. and Plantation Pipeline Co.
* Westinghouse Electric Corp. took another step Monday toward making its CBS network a power in cable TV with a $1.55 billion deal to buy The Nashville Network and Country Music Television from Gaylord Entertainment Co., owner of the Grand Ole Opry.
* U.S. coal production fell 1percent in the week ended Feb.1, to 20 million tons from 20.2 million the week before, the U.S. Department of Energy said Monday. The industry produced 17.6 million tons in the 1996 week. Production so far this year is 91million tons, 5percent ahead of last year's at this time.
LENGTH: Medium: 68 linesby CNB