CSX Chief Feels ‘Targeted’ By TCI

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.


In Depth

Change In 'Accredited Investor' Definition Could Hurt Crowdfunding Space

Jul 25 2014 | 8:14am ET

The Securities and Exchange Commission is considering changes to its 30-year-old...

Lifestyle

David Yarrow On Growing His Hedge Fund And Shooting The Animals And People Of Africa - As A Photographer

Jul 23 2014 | 6:44am ET

While he’s always been a photographer, recent expeditions to Iceland, Ethiopia...

Guest Contributor

The Truth About Track Record Portability

Jul 24 2014 | 5:55am ET

The number of private funds converting to mutual funds has increased significantly...

 

Sponsored Content

    Northern Trust Helps Hedge Funds Navigate Derivatives Regulations

    Jul 8 2014 | 10:48am ET

    The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…

Publisher's Note