Guilford Transportation Industries, one of the railroads planning to bid for federally owned Consolidated Rail Corp., told railroad employes yesterday its cash offer will exceed any proposal made public so far and that it is willing to have employe representation on its board of directors.
In a letter to the Railway Labor Executives Association, which is handling the employes' own offer to buy Conrail, Guilford President Robert Anestis also said his offer would include a proposal that Conrail's employes continue a 12 percent wage reduction they have given Conrail and the Guilford-owned Delaware and Hudson.
Further, Guilford would want that wage reduction extended to the two other Guilford railroads--the Maine Central and the Boston and Maine. In exchange, Guilford would issue 30 percent of its common stock and $300 million of 12 percent preferred stock to a qualified profit-sharing trust for the benefit of all employes of the combined Guilford-Conrail systems.
The employes have bid a package they value at $2 billion, including $500 million in cash. Alleghany Corp. has offered a package it values at $2.1 billion, including $1 billion in cash. Other bidders expected include Norfolk Southern Corp. and CSX Corp., which, like Guilford, are railroad holding companies.