Monroeville, PA – October 4, 2000: Transtar, Inc. (“Transtar”) announced today that it has entered into a Reorganization and Exchange Agreement with its two voting shareholders, Transtar Holdings, L.P. (“Holdings”), an affiliate of Blackstone Capital Partners L.P., and USX Corporation (“USX”). In this reorganization, Holdings would exchange all of its shares in Transtar for 100% of the ownership of four direct Transtar subsidiaries – Bessemer and Lake Erie Railroad Company; the Duluth, Missabe and Iron Range Railway Company; The Pittsburgh & Conneaut Dock Company; and USS Great Lakes Fleet, Inc., and their subsidiaries. As a result of this transaction, USX would become the sole owner of Transtar and its remaining direct subsidiaries – the Birmingham Southern Railroad Company; the Elgin, Joliet and Eastern Railway Company; The Lake Terminal Railroad Company; the McKeesport Connecting Railroad Company; the Mobile River Terminal Company, Inc.; the Union Railroad Company; the Warrior & Gulf Navigation Company; and Tracks Traffic and Management Services, Inc. and their subsidiaries.
This reorganization will allow USX and Holdings to follow their independent strategies for the units they will own. No changes in service will occur as a result of this reorganization.
Consummation of the reorganization is subject to a number of conditions including approvals by the Surface Transportation Board and antitrust clearances.