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RAIL EMPLOYMENT



Rail News Home Financials

10/31/2003



Rail News: Financials

UPdate: Union Pacific prices Overnite IPO at $19 per share


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Union Pacific Corp.'s trucking company spin-off now is trading over the counter.

In an Oct. 31 initial public offering (IPO), 25 million shares of Overnite Corp. stock began trading on the NASDAQ index at $19 per share. By mid-day, shares were trading in the $21.60s.

UP expects the IPO, which gives the corporation a $200 million after-tax gain, to close Nov. 5. At closing, UP will receive net proceeds of about $575 million from the equity sale and the Overnite dividend payment.

Credit Suisse First Boston and Morgan Stanley are the offering's joint book-running managers; Citigroup, Banc of America Securities L.L.C., JPMorgan and Merrill Lynch & Co. serve as co-managers. The underwriters have an option to purchase up to an additional 2.5 million shares of Overnite common stock to cover over-allotments.


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