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

Creating An Offshore Hedge Fund Dream Team: The Seven Key Players

Jun 26 2015 | 6:47am ET

If you want to set up an offshore hedge fund, like any great team, you’re only...

Lifestyle

Hedgies Set to Compete in Wall Street Decathlon

Jun 8 2015 | 12:37am ET

The Wall Street Decathlon — a 10-event physical challenge that will crown “Wall...

Guest Contributor

6 Essential Principles To Balance Your Investment Risk

Jun 26 2015 | 10:07am ET

In this article, financial expert Greg Silberman explores how to hedge a private...

 

Editor's Note