Tuesday, 5 May 2015
Last updated 4 min ago
Jun 10 2008 | 11:58am ET
Another major hedge fund shareholder of CSX Corp. has thrown its weight behind a dissident proxy campaign seeking change at the U.S. railroad giant.
TPG Axon Capital Management, which owns 2.4% of CSX, will back the effort led by The Children’s Investment Fund and 3G Capital Partners, Reuters reports. The four-year-old firm, founded by former Goldman Sachs proprietary trading chief Dinakar Singh and private equity giant TPG, manages $16 billion.
TCI and 3G together own an 8.7% stake in CSX and hold swaps worth another 12.3% of the company. The hedge funds are campaigning to get their slate of five candidates elected to CSX’s board of directors, arguing that the railroad is mismanaged and could achieve more than five times the annual productivity gains that CSX has targeted.
The two sides have also sued each other, with CSX alleging that the hedge funds illegally used equity swaps to mask its stake in the company and evade disclosure rules, and the hedge funds accusing the railroad of all manner of corporate malfeasance.
CSX is asking a federal judge to block TCI’s proxies, but last week the Securities and Exchange Commission told the judge that it disagreed with CSX’s interpretation of disclosure requirements. The company’s annual meeting is set for June 25.
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…