New York Times- An activist hedge fund that has feuded with the railroad operator CSX over its strategy proposed a slate of five alternate directors on Wednesday, beginning a proxy fight.
The hedge fund, the Children’s Investment Fund, teamed up with 3G Capital Management, another hedge fund company, in proposing the board candidates. Together, the two hold some 8.3 percent of CSX, plus derivative holdings whose exposure is equivalent to 11.8 percent, the funds said in a statement.
The move constituted an escalation in hostilities between Children’s Investment and CSX over the company’s spending and corporate governance structure.
In their statement, the two funds said their nominees would “strengthen CSX’s board by adding strong independent directors with a shareholder orientation, a broad range of railroad and other relevant experience, and a firm commitment to improving CSX’s operating performance and corporate governance.â€Â
