(The following report by James Armstrong appeared at HedgeFund.net on October 26.)
Train operator CSX says it will not be railroaded into changes by British hedge fund firm The Children’s Investment Fund Management (TCI).
TCI has asked the company to split its chairman and chief executive officer roles, both of which are currently held by Michael Ward. It also wants to add more board members with railroad experience and improve relations with labor, customers and shareholders.
In an interview with the Financial Times, Ward dismissed TCI’s proposals. He also defended a $5 billion increase in spending over the next three years, largess the hedge fund firm has attacked as undisciplined.
Ward said TCI had come to management with a number of ideas in the past, including increasing rates and borrowing money for a share buyback program. Management rejected those ideas.
With 4.1% of CSX’s stock, TCI is currently the company’s second largest shareholder. The firm has taken activist stances in the past with ABN Amro and Deutsche Börse.
Train operator CSX says it will not be railroaded into changes by British hedge fund firm The Children’s Investment Fund Management (TCI).
TCI has asked the company to split its chairman and chief executive officer roles, both of which are currently held by Michael Ward. It also wants to add more board members with railroad experience and improve relations with labor, customers and shareholders.
In an interview with the Financial Times, Ward dismissed TCI’s proposals. He also defended a $5 billion increase in spending over the next three years, largess the hedge fund firm has attacked as undisciplined.
Ward said TCI had come to management with a number of ideas in the past, including increasing rates and borrowing money for a share buyback program. Management rejected those ideas.
With 4.1% of CSX’s stock, TCI is currently the company’s second largest shareholder. The firm has taken activist stances in the past with ABN Amro and Deutsche Börse.