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CSX sets policy on 'poison pill' plans

Last week, CSX Corp.'s board approved a shareholder rights or "poison pill" policy. A poison pill is a corporate mechanism designed to prevent hostile takeovers and limit the amount of stock a purchaser can acquire.

The Class I will only adopt a shareholder rights plan if a majority of board members determine the plan is consistent with the "exercise of their fiduciary duties," according to a prepared statement. In addition, any plan adopted without shareholder approval would expire in one year unless ratified by stockholders.

Currently, CSX doesn't have a shareholder rights plan. Last year, the company's board terminated a poison pill plan.

Contact Progressive Railroading editorial staff.

More News from 10/25/2004