Newspaper article The Florida Times Union

Group Is Claiming 2 Spots on CSX Board; but CEO Would Not Confirm, Saying the Votes Were Too Close and Will Be Certified July 25

Newspaper article The Florida Times Union

Group Is Claiming 2 Spots on CSX Board; but CEO Would Not Confirm, Saying the Votes Were Too Close and Will Be Certified July 25

Article excerpt

Byline: MARK BASCH

NEW ORLEANS -- At the end of a long -- and according to a dissident shareholder group, unnecessarily long -- annual meeting Wednesday, CSX Corp. said the proxy fight between the shareholders and the company's current board was too close to call. But the shareholders said they were successful in electing at least two and perhaps as many as four of their nominees to CSX's 12-member board.

Snehal Amin, a partner at The Children's Investment Fund Management LLP, said after the meeting that "we can say definitively that we've won two." That's based on information the group has from other large shareholders. He is also optimistic that his group won two other seats.

Late Wednesday, TCI said in a news release that it had won four seats.

Amin also said his group will work constructively with CSX's other directors and that they are not interested in removing the company's top executives, including Chairman and CEO Michael Ward.

"As we've said previously, we don't want to change management," Amin said. "We think we can do it with this management team."

Ward said after the meeting that as long as the board wants him, he will continue to run the company.

"I work at the pleasure of the board," he said.

But Ward would not confirm Amin's claim that his group won at least two seats on the board. He said the votes were too close to call, and the company won't know the results until they are certified.

Ward adjourned Wednesday's meeting after more than four hours and said it would reconvene on July 25, at the company's Jacksonville headquarters, to certify the results. But he said the results could be announced sooner. He said it would take at least three weeks to certify them.

The Children's Investment Fund Management and another hedge fund, 3G Capital Partners, had sought to elect five nominees to the CSX board, saying that they could improve the operations of the railroad company. TCI and 3G combined own about 8.7 percent of CSX's shares. …

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