Contact: Dennis Watson
08/18/2000 (Friday)
(202) 565-1596
No. 00-34
FIRS 1 (800) 877-8339


Surface Transportation Board (Board) Chairman Linda J. Morgan announced today that the Board has directed Greyhound Lines, Inc. (Greyhound) and Laidlaw Inc. (Laidlaw) to provide information regarding potential service disruptions and the actions that the companies will be taking, so that the Board can determine whether further agency action in connection with the 1999 Greyhound-Laidlaw merger is necessary. The Board's order was issued in the wake of Greyhound's recent filing with the Securities and Exchange Commission (SEC) indicating that Laidlaw, which is having financial problems, is curtailing funding to Greyhound.

Greyhound and Laidlaw, two large organizations providing a variety of passenger bus operations through the various corporations they control, merged early last year. In their merger application -- which was unopposed and approved by the Board -- Greyhound and Laidlaw asserted that their consolidation would produce synergies, efficiencies, and savings, and that Laidlaw's financial strength would improve Greyhound's financial and operating position. However, in its recent filing with the SEC, Greyhound stated that, if it does not find additional funding from sources other than Laidlaw, it "may not be able to continue to operate as a going concern."

The Board is concerned about the impact on the traveling public of a sudden cessation of operations by Greyhound. Therefore, the agency has issued a supplemental order in the Greyhound-Laidlaw merger proceeding directing Greyhound and Laidlaw to explain, by September 1, 2000, the nature of the potential transportation crisis and to indicate what future steps will be taken. The Board's order invites replies by other parties by September 15, 2000. After reviewing the record to be developed, the Board will decide whether to impose conditions or take some other action in the merger proceeding. The Board has also acted to hold up another proceeding in which Laidlaw is seeking to acquire other bus carriers.

The Board's decision was issued today in Laidlaw Inc. and Laidlaw Transit Acquisition Corp.--Merger--Greyhound Lines, Inc., STB Docket No. MC-F-20940. The decision is available on the Board's website at A printed copy of the decision is available for a fee by contacting: D~-To-D~ Office Solutions, Room 405, 1925 K Street, N.W., Washington, DC 20006, telephone (202) 466-5530.