New York (HedgeCo.Net) – CSX looks to be cutting some slack to the two rebel hedge funds that have been on a quest to restructure their board of directors.
The railroad company said that it will give two seats to members of the slate first proposed by TGI and 3G Capital Partners and elected during the proxy battle last month.
The seats will go to 3G Managing Director Alexandre Behing and Gilbert Lamphere, former head of Canadian National Railway Co.
However, the hedge funds are claiming they won another two seats on the board. CSX fails to recognize this victory, claiming the election was too close to call.
CSX is planning on reviewing the voting process as early as next week for both TCI head Christopher Hohn and Managing Director of the London Underground Timothy O’Toole. However, the process could take several months.
“We believe the certification process will confirm that shareholders have elected four of our nominees to the CSX board. This latest tactic should be seen for what it is—a cynical attempt to thwart the expressed will of CSX shareholders,” stated the hedge funds.
The much anticipated annual shareholder’s meeting was held at the company’s headquarters in Jacksonville, Florida on June 25th where the board of directors was set to be nominated. Reporters were disappointed when CSX head Michael Ward abruptly ended the meeting and told the public that results were not readily available.
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