JACKSONVILLE, Fla. — Following a decision by the Second Circuit Court of Appeals in New York, CSX Corp.’s Board of Directors has invited TCI Group nominees Christopher Hohn and Timothy O’Toole to join the board immediately.
Hohn and O’Toole would succeed Dr. William C. Richardson and Dr. Frank S. Royal, each of whom has resigned effective upon his successor taking office.
“We are very pleased with the Court’s decision. We hope CSX will now acknowledge that four of our nominees were elected,” TCI said in a statement. “It is time for the entire duly elected Board, including Chris Hohn and Tim O’Toole, to get to work and make progress on the shareholder mandate they received in June.”
The Company reported record earnings in the most recent reporting period and, last week, raised financial guidance for 2008 and through 2010. The update reflects the company’s strong performance, diverse traffic base and the positive outlook for rail and intermodal transportation.
“We look forward to working together with the full Board to continue delivering outstanding results for our customers and shareholders,” Michael J. Ward, chairman, president and CEO, said in a news release.
As previously announced, the annual meeting will reconvene on Sept. 24. Voting results will be received and accepted at that time.
In July, CSX Corp. announced that its Board of Directors has invited John D. McPherson and TCI Group nominees Gilbert H. Lamphere and Alexandre Behring to join the Board.
CSX Corp. has filed a federal lawsuit against The Children’s Investment Fund (TCI) and 3G Capital Partners (3G), alleging violations of federal securities laws. TCI and 3G are hedge funds that formed a group to nominate a slate of directors to stand for election at the 2008 CSX annual meeting.
In its recent decision, the court decided not to enjoin the voting of shares held by TCI and 3G in connection with the 2008 Annual Meeting of Shareholders of CSX Corp.
— Railfanning.org News Wire with PRNewswire-FirstCall