Total Conrail Shares

90.5 million

No. of shares
Conrail 40%
Conrail 60%

36200000
54300000
90500000

Calculating Cash Value

for Exchange Shares at
$46.75
Total Cash Value
Value in $billion

Blended price

Cash Value/Total Shares

90500000

Cash Value
Not applicable

Exchange of Shares
3348500000 Not Applicable
100791117

4711984719.75
8060484719.75
8.0604847198

89.0661295

Multiples Valuation (calcul

Price/Earnings Multiple
Conrail EPS (last 4Q)
Average EPS Multiple
Equity Value per Share

$4.84
17.22
$83.34

Conrail 1996 est. EPS

Average EPS Multiple
Equity Value per Share

$4.91
17.22
$84.55

Conrail 1997 est. EPS

Average EPS Multiple
Equity Value per Share

$5.69
17.22
$97.98

Sales Multiple
Conrail Sales (last 4Q)
Average Sales Multiple
Firm Value
Debt Value (3Q 1996, X - 6)
Equity Value
Equity Value per Sharea
Market/Book Multiple
Conrail Book Value
Average Multiple
Equity Value per Share

EBITDA Multiple
Acquisition Premium
Conrail EBITDA (last 4Q)
$1,017
Conrail Stock Priceb
Average EBITDA Multiple
10.58
Average Premium
Firm Value
$10,760
Equity Value per Share
Debt Value (3Q 1996, X 2,094
Equity Value
8,666
Equity Value per Sharea
$95.76
a
Equity Value per Share = Equity Value/90.5 million acquisition shares outstandin
b
Conrail's pre-merger announcement stock price (A case p.4)

ples Valuation (calculated using the average of all 5 deals and Conrail's financial data

ltiple
les (last 4Q)
ales Multiple

e (3Q 1996, X - 6)
ue
ue per Sharea

ook Multiple
ok Value
Multiple
alue per Share

on Premium
ock Priceb
remium
alue per Share

uisition shares outstanding (A case x - 3)

e p.4)

ail's financial data in A case Exhibit 6)

$3,722
2.42
$9,007
2,094
6,913
$76.39

$32.46
3.64
###

$71.00
53.30%
###