CSX Extends Board Nomination Deadline
February 10 2017 - 11:20AM
Dow Jones News
By Paul Ziobro
CSX Corp. on Friday extended the deadline for board nominations,
buying more time for an activist hedge fund to try to install
railroad executive Hunter Harrison as chief executive.
The Friday deadline was pushed to Feb. 24, the company said.
CSX is squaring off against Mantle Ridge LP, a hedge fund run by
Paul Hilal, a former top lieutenant of billionaire Bill Ackman's
Pershing Square. The firm is pushing CSX to replace CEO Michael
Ward with Mr. Harrison, the recently retired CEO of Canadian
Pacific Railway Ltd. who has been lauded for his operational
expertise. Mr. Hilal is also trying to win several new board seats,
people familiar with the matter said.
Mr. Harrison last month negotiated an early retirement as CEO of
Canadian Pacific Railway Ltd., forfeiting $89 million in
compensation in exchange for waiving a non-compete agreement.
The Wall Street Journal reported that the 72-year-old has his
sights set on CSX, where he believes he can improve the railroad
company's operating ratio, a closely watched measure of expenses as
a percentage of revenue, using his so-called precision railroading
strategy that seeks to run fewer trains and stick to schedules,
which can ensure more timely deliveries and more efficient use of
locomotives.
CSX has said it welcomes the input of shareholders but remains
supportive of the company's strategy.
Write to Paul Ziobro at Paul.Ziobro@wsj.com
(END) Dow Jones Newswires
February 10, 2017 11:05 ET (16:05 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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