(Reuters circulated the following on June 12.))
NEW YORK — CSX Corp. said on Thursday it negotiated with investment firm The Children’s Investment Fund Management (TCI) to resolve a proxy contest, but said it broke off negotiations once it became clear TCI was seeking effective control of CSX.
In a letter to shareholders ahead of this month’s shareholder meeting, the railroad said a court ruling against TCI and 3G Capital Partners supports its contention that TCI nominees are not fit to serve on the CSX board.
U.S. District Court Judge Lewis Kaplan ruled on Wednesday the two investment firms violated securities laws evaded disclosure obligations as they acquired large stakes in CSX. But the judge, based at the federal court house in Manhattan, has denied a CSX request for an injunction, pending appeal of the ruling.