(Reuters issued the following on May 15.)
NEW YORK — U.S. railroad CSX Corp. said on Thursday its board is unanimously opposed to an agenda put forward by activist investor group The Children’s Investment Fund (TCI), and is asking shareholders to re-elect its board.
TCI earlier this month proposed a minority slate of five directors, saying CSX lags its peers on key operational metrics, while its executives award themselves with the industry’s highest compensation.
CSX said in the letter to shareholders TCI’s ideas are “based on flawed assumptions and half truths.”
“TCI Group has offered ideas that would either destroy value or are already under way at CSX. It is no wonder that they have tried to keep you focused on loosely knit and flawed comparisons to other railroads,” the letter said.