CSX to convey CSX Lines for $300 million.

• Position: Transportation - Brief Article

CSX Corp. (NYSE: CSX) announced it has agreed to convey its domestic container shipping unit, CSX Lines LLC, to a venture formed with The Carlyle Group for approximately $300 million in cash and securities. The transaction is subject to customary conditions, and regulatory approvals. Closing is expected to take place in the first quarter of 2003.

CSX Corp. will receive $240 million in cash and $60 million of securities issued by the venture. CSX has the potential to gain additional value if certain financial targets are met. Michael J. Ward, CSX president, said, "This is a terrific transaction for all parties. Completion of this transaction is consistent with our long-stated strategy of becoming a more rail-based organization, (and it) strengthens our balance sheet and provides shareholders with significant value.

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