[Federal Register Volume 61, Number 141 (Monday, July 22, 1996)]
[Notices]
[Pages 37959-37960]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-18519]
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[[Page 37960]]
DEPARTMENT OF TRANSPORTATION
Surface Transportation Board \1\
[STB Finance Docket No. 32992]
Varlen Corporation--Acquisition of Control Exemption--
Commonwealth Railway, Inc., Carolina Coastal Railway, Inc., and
Talleyrand Terminal Railroad Company, Inc.
Varlen Corporation (Varlen), a noncarrier, has filed a notice of
exemption to acquire control of Commonwealth Railway, Inc. (CRI),
Carolina Coastal Railway, Inc. (CCR), and Talleyrand Terminal Railroad
Company, Inc. (TTR), through its acquisition pursuant to the
anticipated success of a tender offer for a controlling percentage of
the stock of Brenco, Incorporated (Brenco), a noncarrier, and,
indirectly, its wholly owned subsidiary Rail Link, Inc., which is the
parent noncarrier holding company of CRI, CCR, and TTR. Following a
successful tender offer, Brenco would be merged with BAS, Inc.
(BAS),\2\ an existing, wholly owned subsidiary of Varlen. The
transaction was to be consummated on or after the July 3, 1996
effective date of the exemption.
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\1\ The ICC Termination Act of 1995, Pub. L. No. 104-88, 109
Stat. 803, which was enacted on December 29, 1995, and took effect
on January 1, 1996, abolished the Interstate Commerce Commission and
transferred certain functions to the Surface Transportation Board
(Board). This notice relates to functions that are subject to Board
jurisdiction pursuant to 49 U.S.C. 11323.
\2\ BAS is not a rail carrier and does not control any rail
carriers.
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Varlen states that: (1) these railroads do not connect with each
other; (2) the acquisition of control is not part of a series of
anticipated transactions that would connect the railroads with each
other or any railroad in their corporate family; and (3) the
transaction does not involve a Class I carrier. Therefore, the
transaction is exempt from the prior approval requirements of 49 U.S.C.
11323. See 49 CFR 1180.2(d)(2).
Under 49 U.S.C. 10502(g), the Board may not use its exemption
authority to relieve a rail carrier of its statutory obligation to
protect the interests of its employees. Section 11326(c), however, does
not provide for labor protection for transactions under sections 11324
and 11325 that involve only Class III railroad carriers. Because this
transaction involves Class III rail carriers only, the Board, under the
statute, may not impose labor protective conditions for this
transaction.
Petitions to revoke the exemption under 49 U.S.C. 10502(d) may be
filed at any time. The filing of a petition to revoke will not
automatically stay the transaction.
An original and 10 copies of all pleadings, referring to STB
Finance Docket No. 32992, must be filed with the Surface Transportation
Board, Office of the Secretary, Case Control Branch, 1201 Constitution
Avenue, N.W., Washington, DC 20423 and served on: Kelvin J. Dowd,
Slover & Loftus, 1224 Seventeenth Street, NW, Washington, DC 20036.
Decided: July 12, 1996.
By the Board, David M. Konschnik, Director, Office of
Proceedings.
Vernon A. Williams,
Secretary.
[FR Doc. 96-18519 Filed 7-19-96; 8:45 am]
BILLING CODE 4915-00-P
