End Of The Line For Union Pacific's Bid

UNION PACIFIC WALKED AWAY from its four-month-long exercise in acquisition futility--but not before making Santa Fe Pacific shareholders considerably wealthier. UP gave up its battle on Jan. 31 to derail Burlington Northern's proposed acquisition of Santa Fe. The price just got too high, says UP Chairman Drew Lewis. But thanks to UP's intervention, Burlington Northern now will pay $4 billion in cash and stock for Santa Fe, up almost 50% from its original $2.7 billion all-stock offer--which Santa Fe's board of directors had O.K.'d. The richer deal is expected to be approved by Santa Fe shareholders on Feb. 7.