Two Chicago railroads expressed interest yesterday in the Gulf, Mobile & Ohio Railroad, one through a study of a possible merger and the other by substantial stock purchases.
The Illinois Central and the GM&O announced jointly that they had opened a study to determine the feasibility of a merger of the two lines.
The Chicago & North Western Railway disclosed that it had acquired 135, 128 shares, or about 13.3% of the outstanding common stock of the G.M.&O because of its "high regard for the management of the G.M.&O. and the territory it seves so well."
The two developments came as a surprise to many rail observers.
Operations of the Illinois Central, with 6,466, miles of track, and the G.M.&O. , with 2,747 miles of track, largely parallel to each other from Chicago to the Gulf of Mexico. The G.M.&O. has it headquarters in Mobile, ALA. The Illinois Central also has an east-west line from Chicago to Nebraska, Iowa, and South Dakota. The Chicago & North Western operates 10,729 miles of track out of Chicago to Wisconsin, Iowa, Minnesota, South Dakota and Nebraska.
No Seats Sought- A North Western spokesman said the line was "not now" seeking representation on the G.M.&O. board. He declined to say whether the road planned to acquire more shares or to seek outright control.
A C.&N.W. consolidation with the G.M&O. would be an end-to-end merger, whereas an Illinois Central merger with the G.M.&O. could eliminate duplicate facilities.
Many rail observers were surprised by the brief announcement concerning the Illinois Central's interest in the G.M.&O. because the Illinois Central already has a merger study pending with the Missouri Pacific Railroad.
The Illinois Central and the Missouri Pacific are also awaiting an Interstate Commerce Commission ruling on their applications to acquire control of the Chicago & Eastern Illinois Railroad.
The Chicago & North Western has had merger negotiations with the Chicago, Milwaukee, St. Paul and Pacific Railroad, although those talks reached an impasse early in 1961 because of a failure to agree on terms of a consolidation.
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NY Times 7/12/1962
The Illinois Central and the GM&O announced jointly that they had opened a study to determine the feasibility of a merger of the two lines.
The Chicago & North Western Railway disclosed that it had acquired 135, 128 shares, or about 13.3% of the outstanding common stock of the G.M.&O because of its "high regard for the management of the G.M.&O. and the territory it seves so well."
The two developments came as a surprise to many rail observers.
Operations of the Illinois Central, with 6,466, miles of track, and the G.M.&O. , with 2,747 miles of track, largely parallel to each other from Chicago to the Gulf of Mexico. The G.M.&O. has it headquarters in Mobile, ALA. The Illinois Central also has an east-west line from Chicago to Nebraska, Iowa, and South Dakota. The Chicago & North Western operates 10,729 miles of track out of Chicago to Wisconsin, Iowa, Minnesota, South Dakota and Nebraska.
No Seats Sought- A North Western spokesman said the line was "not now" seeking representation on the G.M.&O. board. He declined to say whether the road planned to acquire more shares or to seek outright control.
A C.&N.W. consolidation with the G.M&O. would be an end-to-end merger, whereas an Illinois Central merger with the G.M.&O. could eliminate duplicate facilities.
Many rail observers were surprised by the brief announcement concerning the Illinois Central's interest in the G.M.&O. because the Illinois Central already has a merger study pending with the Missouri Pacific Railroad.
The Illinois Central and the Missouri Pacific are also awaiting an Interstate Commerce Commission ruling on their applications to acquire control of the Chicago & Eastern Illinois Railroad.
The Chicago & North Western has had merger negotiations with the Chicago, Milwaukee, St. Paul and Pacific Railroad, although those talks reached an impasse early in 1961 because of a failure to agree on terms of a consolidation.
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NY Times 7/12/1962
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