Company news; Illinois Central seeks to acquire 3 rail lines
Bloomberg Business News
Published: November 16, 1995
The Illinois Central Corporation said yesterday that it wanted to acquire three lines of the Southern Pacific Rail Corporation near the Gulf of Mexico because of the Union Pacific Corporation's proposed $4 billion acquisition of Southern Pacific. Illinois Central said it had filed with the Interstate Commerce Commission to buy Southern Pacific lines between Memphis and Dallas; Houston and Brownsville, Texas; and New Orleans and Houston. Illinois Central said it would seek to buy the lines if the Interstate Commerce Commission determined that the merger agreement between Union Pacific and Southern Pacific was anti-competitive.
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By Bloomberg Business News
Published: February 3, 1996
BETHLEHEM, Pa., Feb. 2— The Union Pacific Corporation signed an agreement this week that would end the Illinois Central Corporation's opposition to its proposed $5.4 billion acquisition of the Southern Pacific Rail Corporation.
If the acquisition is approved by Federal regulators, Union Pacific will sell to Illinois Central a rail line currently owned by Southern Pacific that runs between Church and Valley Junction in Illinois. Union Pacific would retain the right to run its trains on the track.
In addition, the agreement includes a plan for the newly merged company and Chicago-based Illinois Central to operate where the two railroads' tracks come together. It also provides for cooperation in a possible plan to market forest products, coal and chemicals.
In return, Illinois Central agreed not to oppose the proposed merger, Union Pacific said.
The merger would create one of the nation's largest railroads, with 31,000 miles of track in 25 states.
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