Carlyle Group Buys Piece
Of CSX Container Business

By William Spain

RICHMOND, Va. (CBS.MW) - A private equity group with interests in everything from soda pop to self-propelled guns has nipped off a piece of CSX.
After the bell Tuesday, transportation giant CSX announced that it would sell a majority stake in its domestic container shipping unit -- CSX Lines -- to the Carlyle Group for approximately $240 million in cash and $60 million in securities.
The deal, subject to regulatory approval, is expected to close in the first quarter of 2003.
According to Michael Ward, CSX president, "completion of this transaction is consistent with our long-stated strategy of becoming a more rail-based organization, strengthens our balance sheet and provides shareholders with significant value."
CSX Lines, which moves goods between the continental United States and Alaska, Hawaii, Guam and Puerto Rico, accounted for about 8 percent of the company's $8 billion in revenues last year.
Shares of CSX (CSX: news, chart, profile) closed up 20 cents at $29.35 Tuesday.
The sale comes just days after CSX CEO John Snow was tapped by the White House to be the new Secretary of the Treasury.
The Carlyle Group is headed by Frank Carlucci, former secretary of defense in the Reagan administration. Other prominent players at the private global investment firm include William E. Kennard, former FCC chairman, Arthur Levitt, former SEC chairman, James Baker, III, former secretary of state, and John Major, former prime minister of Great Britain.
Former president Bush has also lobbied Saudi Arabia on behalf of Carlyle Group.
William Spain is a reporter for in Chicago.
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