DOT's Selection of Investment Banks To Underwrite the Sale of Conrail
RCED-87-88: Published: Feb 17, 1987. Publicly Released: Mar 9, 1987.
- Full Report:
Pursuant to a congressional request, GAO reviewed the Department of Transportation's (DOT) selection of six investment banks to manage the sale of the government's interest in the Consolidated Rail Corporation (Conrail).
GAO found that: (1) although there were some discussions between DOT and investment banks which occurred outside the formal selection process, these discussions did not affect the selection of the six co-lead managers; (2) DOT complied with the statutory criteria during the first and second rounds of selection; (3) DOT consulted with the Department of the Treasury and Conrail to ensure that the investment banks had the proper mix of retail and institutional sales capabilities and significant minority participation in the final sale; and (4) the selection process was fair and proper and provided all interested parties with an equal opportunity to compete.