CSX May Boost Stock Portion of Conrail Bid

CSX Corp. may boost the stock portion of its $8.5-billion bid for Conrail Inc., Bradley Jones, a Conrail director, testified at the second day of hearings in Philadelphia on Norfolk Southern Corp.’s lawsuit to block CSX’s tender offer for Conrail shares. CSX has offered $110 in cash for the first 40% of Conrail and 1.856 CSX shares for the rest, or about $83.29 a share. Hostile bidder Norfolk Southern has offered $110 a share in cash, or $10 billion, for Conrail. Sources told Bloomberg Business News that the new offer will probably be made in December, just before a key vote by Conrail shareholders. Conrail shares rose 37.5 cents to close at $96.375; CSX shares rose 87.5 cents to $45.375; Norfolk Southern rose 12.5 cents to $89. All trade on the New York Stock Exchange.