Railroaders place to shoot the shit.

Members Login
Username 
 
Password 
    Remember Me  
Burning Journal -> CSX -> A stronger CSX
Post Info TOPIC: A stronger CSX
Uke


Cured

Status: Offline
Posts: 26926
Date:
RE: A stronger CSX
Permalink  
 

A whole bunch of new 'outsiders' who are NOT carreer railroad people will be butting in real soon. Their goal? Money for shareholders of course.

I look for more CSX execs ta bail out as these 'hedge-fund' managers take control, and perhaps take CSX private. Then they open the books, steal the cash...and sell off the assets!
----------------------------------------------------
CSX says hedge funds win 4 out of 5 seats
July 16, 2008 5:14 PM EDT

NEW YORK - CSX Corp. says preliminary results of the railroad's contentious board vote show that four out of five directors nominated by activist hedge fund shareholders TCI and 3G Capital have been elected to its board.

The company said Wednesday shareholders elected TCI Founder Chris Hohn, 3G Managing Director Alexandre Behring, Gilbert H. Lamphere and Timothy T. O'Toole. Lamphere is a managing director of private investment firm Lamphere Capital Management and a former director at Canadian National Railway Co. O'Toole is managing director of the London Underground.

The only candidate nominated by the activist shareholders not elected was Gary Wilson, a former chairman at Northwest Airlines Corp.

Existing CSX board members that were re-elected include: Donna M. Alvarado, John B. Breaux, Steven T. Halverson, Edward J. Kelly III, John D. McPherson, David M. Ratcliffe, Donald J. Shepard and Chairman and Chief Executive Michael J. Ward.

Chairman and Chief Executive Michael Ward said in a conference call Wednesday that final results might not be available for another month.

The results, which are subject to a review and challenge period, were tallied by an independent proxy examiner. They will not be final until the completion of a pending CSX appeal of a prior U.S. District Court ruling on the proxy battle, Ward said.

On June 11, U.S. District Judge Lewis A. Kaplan ruled that he could not stop the hedge funds from voting their shares at CSX's annual shareholder meeting even though the funds violated securities laws - by understating their stake in CSX - to gain enough shares to nearly control the company. The hedge funds own an 8.7 percent stake in CSX, but have economic exposure to 12.3 percent more through swap contracts.

Ward said he expects additional briefs related to the ruling to be filed later this month. Oral hearings on the appeal are set for Aug. 25.

"So until we fully work through all of that...I don't know (that) we will know the final results of that election," Ward said.

CSX shares rose $3.60, or 6.2 percent, to $61.49 Wednesday. Late Tuesday, the company said its second-quarter earnings rose 19 percent on strong demand for coal, grain and metals.

The company's stock has ranged from $38.09 to $70.70 over the past year.



__________________

Hmm. That address doesnt look right.
It looks like the link pointing here was faulty.

Gah. Your tab just crashed.
Uke


Cured

Status: Offline
Posts: 26926
Date:
Permalink  
 

They keep on tryin' ta win control...and the courts seem ta be on their side. Maybe the new bunch has a better idea for running the railroad.

pixel.gif
CSX Proxy Battle
pixel.gif
TCI loses $1 billion, but gains seats on CSX board
2Q results: Railroads EPS climbs 31%
pixel.gif
In an ironic coincidence, shares of CSX rose nearly 6% in late-day trading Wednesday to $60.94 on the New York Stock Exchange following the railroad's second-quarter 2008 earnings report, one day after it was reported that TCI, the dissident hedge fund that gained four seats on CSX's board of directors, took a hit of more than $1 billion in Juneits largest-ever monthly loss. TCI lost 12.5% of its value and plunged into the red for the year's first six months, according to a report in the Financial Times. Meanwhile, in the second quarter, CSX set all-time records in revenue and operating income, which were up 15% and 17%, respectively. Earnings per share grew 31% to a record 93 cents, based on earnings of $385 million, compared to $324 million, or 71 cents per share, in the prior-year quarter. Revenue increased in eight of the CSX's 10 market segments, resulting in quarterly revenue of $2.9 billion and operating income of $717 million.

-- Edited by Uke at 02:05, 2008-07-17

__________________

Hmm. That address doesnt look right.
It looks like the link pointing here was faulty.

Gah. Your tab just crashed.
Freddie Krueger


Unstable & Irrational

Status: Offline
Posts: 10779
Date:
Permalink  
 

The four new board members have railroad experience. I thank Snippy and all the others for voting blue.

__________________

I started ophph with nuthin, and I can safely say I have most of it left....
<img
Troll


500 - Internal Server Error

Status: Offline
Posts: 36511
Date:
Permalink  
 

CSX CEO tells latest on proxy battle

(The following story by Tom Brennan appeared at CNBC.com on July 16.)

NEW YORK CSX Chief Executive Michael Ward just cant do enough. At least not for the hedge funds that have been trying to take control of his company.

The rails company reported a 19% jump in second-quarter earnings Tuesday, and revenue rose 15%. CSX also affirmed its full-year guidance.

When you consider the economy thats out there, the fuel prices that are out there, I think we did a great job, said Ward, who also serves as chairman and president.

But TCI Group and 3G Capital have just won four seats on CSXs board of directors and theyve been pushing hard to remove Ward from his post, saying the company could still perform better.

Funny, though, because according to a recent Financial Times story, TCI just had its worst month ever in June, losing $1 billion.

Ward told Cramer on Wednesday that the hedge funds seemed to have softened a bit on wanting him out, claiming, They want to work with existing management, he said.

Whats most important is shareholder value creation, Ward said. Regardless of how the eventual board composition comes out, they have the same interests we do, which is to drive that value creation.

While other industrial-based companies are struggling, CSX has been outperforming thanks to its exposure to key commodities markets, such as coal, phosphates, ethanol and grain. And some of the companys contracts are due for renegotiations, which means higher prices for CSX. Overall, strong commodity demand is driving the business right now.

That man has never let us down, Cramer said of the CSX CEO. Im sticking with Ward.

Thursday, July 17, 2008



__________________

© Equal Opportunity Annoyer

Troll The Anti-Fast Freight Freddie

 

 

 

 
Freddie Krueger


Unstable & Irrational

Status: Offline
Posts: 10779
Date:
Permalink  
 

Hmm, Ward sounds like he is beginning to suck up to the new members already.......

__________________

I started ophph with nuthin, and I can safely say I have most of it left....
<img
«First  <  1 2 | Page of 2  sorted by
 
Quick Reply

Please log in to post quick replies.
Burning Journal -> CSX -> A stronger CSX
Chatbox
Please log in to join the chat!