CSX files investor presentation with SEC, urges shareholders to reject TCI/3G board nominees (5/5/2008)


On May 2, CSX Corp. filed an investor presentation with the Securities and Exchange Commission (SEC) in connection with the company's 2008 annual shareholder meeting, which is scheduled for June 25.

The CSX board is recommending that shareholders re-elect its "experienced and highly qualified directors" and support the board's efforts to "create additional value by promptly voting the white proxy card by telephone, Internet or mail," according to a prepared statement. CSX also "strongly urges" shareholders to disregard any blue proxy card sent by The Children's Investment Fund (TCI) or other members of TCI's group, including 3G Capital Partners. In December, TCI and 3G formed a group whose members now own about 8.7 percent of CSX's outstanding common shares and derivative non-voting securities totaling an additional 12.3 percent of outstanding shares.

TCI and 3G — which last week issued a white paper entitled "CSX: The Case for Change" to address what they believe are four critical questions regarding CSX's corporate governance and operational performance — has nominated five independent directors for election to the board.

"We believe that the block of TCI group nominees, if elected, may seek to implement an agenda that would damage CSX's future success and returns to shareholders," said CSX Chairman, President and Chief Executive Officer Michael Ward in a prepared statement.

Source: Progressive Railroading Daily News