| | | | | | | | | | | | | | Target Financial Data | | | | Announcement | Deal | Offer | Assets | Revenues | Debt/Equity | | Target | Acquirer | Date | Attitude | Status | ($ millions) | ($ millions) | (book value) | | Santa Fe Pacific | Burlington Norhtern | 6/29/1994 | Friendly | Completed | $5,941 | $2,795 | 0.96 | | Kansas City Southern | Illinois Central | 7/19/1994 | Friendly | Withdrawn | 1,399 | $495 | 1.42 | | Santa Fe Pacific | Union Pacific | 10/5/1994 | Hostile | Withdrawn | 5,941 | 2795 | 0.96 | | Chicago and North Western | Union Pacific | 3/10/1995 | Friendly | Completed | 2,203 | 1116 | 3.86 | | Southern Pacific | Union Pacific | 8/2/1995 | Friendly | Completed | 4,359 | 3159 | 1.38 | | | | | | | | | | | | | | | | | | | | | | Offer Price per Share | Total Enterprise Value | Four-week | Projected | Projected synergies as a | | | as a multiple of | as a multiple of | Acquisition | Merger Synergies | Percent of the Target's | Target | Acquirer | EPS | Book value | Sales | EBITDA | Premium (%) | ($ millions) | Operating Expenses | Santa Fe Pacific | Burlington Norhtern | 21.4x | 4.5x | 2.6x | 13.1x | 73% | $560 | 22.30% | Kansas City Southern | Illinois Central | 14.6 | 1.7 | 3.6 | 9.9 | na | na | na | Santa Fe Pacific | Union Pacific | 13.4 | 2.8 | 1.8 | 9.2 | 52% | na | na | Chicago and North Western | Union Pacific | 18.3 | 5.5 | 2.4 | 8.5 | 34% | $250 | 27% | Southern Pacific | Union Pacific | 18.4 | 3.7 | 1.7 | 12.2 | 54% | $660 | 24.5% | | | | | | | | | | | | | | | | | | | | Conrail Financial Data | | | | | $ per Fully Diluted | | | | | | $ millions | | Share | | | | | | Asset (3Q 1996) | $8,387.00 | EPS (last 4Q) | 4.84 | | Debt/Equity | 0.71 | (Book value) | | Debt (3Q 1996) | 2094 | EPS (1996 est) | 4.91 | | | | | | Sales (last 4Q) | 3722 | EPS (1997 est) | 5.69 | | Number of | | | | EBITDA (last 4Q) | 1017 | Book value (3Q 1996) | 32.46 | | Acquisition shares | 90.5 | million | | | Average and Median Multiples | | | | | | | | | | | | | | | | | Book | | | Acquisition | | | EPS | Value | Sales | EBITDA | Premium | All five Deals | | | | | | | | Average | | | | | | | Median | | | | | | Completed Deals Only | | | | | | | | Average | | | | | | | Median | | | | | | | | | | | | | | | | | | | | Multiple valuation | | | | | | | | | | | | | | Price/Earnings Multiples | | | Sales Multiple | | | | | | | | | | Conrail EPS (Last 4Q) | | | Conrail Sales (last 4Q) | | | Average EPS Multiple | | | Average Sales Multiple | | | Equity Value per Share | | | Firm Value | | | | | | Debt Value (3Q 1996, X-6) | | Conrail 1996 est. EPS | | | Equity Value | | | Average EPS Multiple | | | Equity Value per Share | | | Equity Value per Share | | | | | | | | | | Market/Book Multiple | | | Conrail 1997 est. EPS | | | | | | | Average EPS Multiple | | | Conrail Book Value | | | Equity value per Share | | | Average Multiple | | | | | | Equity Value per Share | | | EBITDA Multiple | | | | | | | | | | Acquisition Premium | | | Conrail EBITDA (last 4Q) | | | | | | | Average EBITDA Multiple | | | Conrail Stock Price | | | Firm value | | | Average Premium | | | Debt Value (3Q 1996, X-6) | | | Equity Value per Share | | | Equity Value | | | | | | | Equity Value per Share | | | | | | | | | | | | | | | | | | | | | | | |