Wednesday, 6 May 2015
Last updated 3 hours ago
May 22 2008 | 2:00am ET
U.S. railroad giant CSX Corp. yesterday made its case for blocking a group of activist hedge funds’ bid to win representation on its board.
CEO Michael Ward told a federal judge in New York that he negotiated in good faith with London hedge fund The Children’s Investment Fund—which is backed by another hedge fund, 3G Capital Partners. He testified that he “felt targeted by TCI,” saying that the fund planned to oust him if it succeeded in taking control of the board.
The railroad says that TCI violated securities laws by using derivatives to hide part of its stake in the company. CSX wants the judge to bar TCI from running its slate of five director candidates to the company’s 12-strong board, as well as ban TCI and 3G from voting some of their shares at its June 25 annual meeting and force them to sell part of their stake.
The two funds own a combined 8.7% of CSX, though it owns derivatives that could bring its stake up to 12.3%.
TCI has fired back with a countersuit, accusing CSX of all manner of corporate corruption and malfeasance.
The judge is expected to rule on TCI’s board slate before the annual meeting.
Mar 20 2015 | 12:45pm ET
StreetWise Partners, a non-profit organization that works with low-income individuals to help them overcome employment barriers, raised over $275,000 at the 2015 Raising the Ante Charity Poker Tournament and Casino Event last Wednesday evening at Capitale. Here are some photos from the event. Read more…