CSX Capitulates In TCI Proxy Fight

Sep 16 2008 | 9:30am ET

Ending a long-running and ugly battle, U.S. railroad CSX Corp. will seat two director nominees whose victory over management candidates it had disputed.

The move to add the second pair of nominees proffered by activist hedge funds The Children’s Investment Fund and 3G Capital Partners comes after a federal appeals court upheld a lower court decision allowing the two funds to vote their 6.4% stake in CSX. The Second Circuit Court of Appeals refused to overturn the June decision which found that late disclosures by the hedge funds did not cause the irreparable harm to CSX shareholders necessary to strip them of their rights.

CSX said TCI chief Christopher Hohn and London Underground managing director Timothy O’Toole will join the company’s 12-member board on Sept. 24. Two other hedge fund nominees, including 3G’s Alexandre Behring, were seated in July. The Jacksonville-based company refused to seat Hohn and O’Toole at the time because their margin of victory was small enough that a CSX court victory could have kept them off the board.


In Depth

Exotic Assets: Investing In Rare Violins

Jan 17 2017 | 4:43pm ET

By definition, alternative investments include exotic assets far beyond your typical...

Lifestyle

'Tis the Season: Wall Street Holiday Parties Back In Fashion

Dec 22 2016 | 9:23pm ET

Spending on Wall Street holiday parties has largely returned to pre-2008 levels...

Guest Contributor

The Trump Administration: What It Could Mean for Carried Interest

Jan 19 2017 | 5:25pm ET

The arrival of the Trump administration brings the potential for a repeal of the...

 

From the current issue of

Often seen as a passion project, or part of a philanthropic venture, rare and fine stringed instruments offer an exciting option to diversify one’s investment portfolio while providing an opportunity for an exceptional long-term investment.