Senators Want to Look at Proposed CSX Investors

WASHINGTON — Democratic and Republican senators want an investigation into the push that foreign investors are making to take control of CSX, according to a published report.

“Very little is known about the investors in the TCI group or those investors’ agenda,” the senators said in a letter to Treasury Secretary Henry Paulson, USA Today reported. “They are anonymous and invisible to government regulators” and could be fronts for foreign governments.”

TCI is a hedge fund that formed a group to nominate a slate of directors to stand for election at the 2008 CSX annual meeting.

In March, CSX filed a federal lawsuit against TCI and 3G Capital Partners, alleging violations of federal securities laws. CSX filed the lawsuit in the United States District Court for the Southern District of New York. CSX alleges TCI and 3G violated federal securities laws, including violations of the Securities Exchange Act of 1934.

TCI, which owns nearly 9 percent of CSX’s shares, wants to control five of the board’s 12 seats.

— News Wire