(Source: Railway Age opinion column by William C. Vantuono, February 17, 2017)
NEW YORK — Below the blustery, wind-whipped surface, it’s pretty simple, so I’ll simplify it: Hilal wants to make lots of money, fast. That’s the standard hedge fund MO. (If you don’t know what MO stands for, trying watching reruns of “Dragnet” or “Adam-12.” Just the facts, mister.). CSX looks pretty good for a takeover. The CEO, Michael Ward, wants to retire fairly soon. Hunter still has lots of skin in the game. Let’s install him as CEO, and let him do what he does best. And while we’re at it, let’s grab a few board seats. The operating ratio goes down through streamlining the operation and cost-cutting. The stock price goes up (it already has, by the way). The shareholders make lots of money. Hilal cashes out and moves on to his next project. “Hey CSX, let’s see if we can do this nice and friendly-like.”
Full story: Railway Age