Railroad Forums 

  • Conrail's failed bid for SP-East was real

  • Discussion related to the operations and equipment of Consolidated Rail Corp. (Conrail) from 1976 to its present operations as Conrail Shared Assets. Official web site can be found here: CONRAIL.COM.
Discussion related to the operations and equipment of Consolidated Rail Corp. (Conrail) from 1976 to its present operations as Conrail Shared Assets. Official web site can be found here: CONRAIL.COM.

Moderators: TAMR213, keeper1616

 #77357  by LCJ
 
Otto Vondrak wrote:Conrail did not merge with SP, nor was the union ever seriously contemplated or explored.
The transaction was very seriously explored and actively pursued by Conrail's management team. The acqusition was intended to provide competitive balance in the So. Texas-St. Louis corridor.

It's a fact. Conrail made an offer, although it was rejected by UP. I personally spoke with Dave LeVan one day in Pittsburgh immediately after the STB ruled against it. I asked him if there was anything else that was under consideration that would be as big. He just shook his head and said, "No -- nothing."

 #77494  by Otto Vondrak
 
Sorry, I thought this was another one of TerryC's wild fantasies.

Besides making a bid, did the process ever make it to the ICC?

How did you get to know LeVan?

-otto-
 #77507  by LCJ
 
The transaction was submitted to STB under the process for approving the UP-SP merger. UP fought it tooth and nail. Conrail had some very serious backing, including the chemical shippers and the Texas Railroad Commission. All for naught, though, since Drew Lewis had overwhelming influence on the STB. Even though it was probably doomed from the start, it was a very good idea that would have made a huge difference.

I became loosely aquainted with LeVan during my time at Conrail. We did some executive training at our center in Conway (Pgh). He was an attendee just before he ascended to the role of CEO.

 #78029  by TerryC
 
To Otto Vondrak and others who do this. Please try to check search engines BEFORE you assume that I am full of ---- ----. I get the impression that you enjoy insulting me and putting me down.

 #78324  by Otto Vondrak
 
TerryC- given your own track record of NOT performing searches to answer your own questions, and your penchant for attaching random ideas to whatever it is we're talking about at the time, yes, I often question your posts. Maybe if you offered some back up or background to your posts, they wouldnt be dismissed so quickly.

LCJ- Thanks for the info. I guess this proposal wasn't widely publicized, or I wasn't paying attention at the time. When did this go down?

-otto-

 #78333  by LCJ
 
Otto Vondrak wrote:LCJ- Thanks for the info. I guess this proposal wasn't widely publicized, or I wasn't paying attention at the time. When did this go down?
STB made their decision on August 6, 1996 about the UP-SP merger. Here's a link to the full text of the decision: STB decision text pdf file

Conrail pursued the acquisition for about a year before that date. LeVan and the team really kind of "bet the farm" on it, as it was a last resort effort to remain a viable, independent company. Conrail offerred $1.9 billion for the property they termed "SP-East."

 #78371  by AmtrakFan
 
Otto Vondrak wrote:Sorry, I thought this was another one of TerryC's wild fantasies.

Besides making a bid, did the process ever make it to the ICC?

How did you get to know LeVan?

-otto-
Yes they did for the Chicago to Houston line. My Dad was an SP shareholder at the time. Also I read somewhere in a book that ATSF was talking about buying CR at the time was that true or no? I am going to look also.

John

 #78402  by LCJ
 
AmtrakFan wrote:Also I read somewhere in a book that ATSF was talking about buying CR at the time was that true or no?
Yes. There were some very preliminary talks about such a merger at one point, but it never went anywhere (obviously).

 #78413  by SRS125
 
The failed ATSF/Conrail merger was right around 1985 or 1986. ATSF droped the idea after Norfolk Southern cryed Wolf and wanted there share. This is about the same time when the failed ATSF/SP Merger failed just after trying to buy Conrail.

 #78436  by AmtrakFan
 
SRS125 wrote:The failed ATSF/Conrail merger was right around 1985 or 1986. ATSF droped the idea after Norfolk Southern cryed Wolf and wanted there share. This is about the same time when the failed ATSF/SP Merger failed just after trying to buy Conrail.
Thanks!!!!!!!!!!!!!!!!!

John