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TCI and 3G Capital can vote their shares at CSX's annual stockholders meeting, appellate court says


The decision to elect CSX Corp. board members nominated by the Class I or the Children's Investment Fund Management L.L.P. (TCI) and 3G Capital Partners Ltd. still will rest with all stockholders tomorrow at the railroad's annual shareholders meeting in New Orleans.

Late last week, the U.S. Court of Appeals for the Second Circuit agreed with a district court ruling that TCI and 3G should be able to vote their shares. CSX officials had sought the court ruling to prevent the parties from voting their shares.

"It is time for CSX to stop its diversionary and delaying tactics and allow shareholders to decide for themselves on June 25th who they want representing their interests on the CSX board of directors," TCI and 3G officials said in a prepared statement.

In December, TCI and 3G formed a group whose members own 8.7 percent of CSX's outstanding common shares. The group has nominated Alex Behring, Christopher Hohn, Gil Lamphere, Tim O'Toole and Gary Wilson to CSX's board. Behring is 3G's managing director; Hohn is TCI's founder; Lamphere is managing director of Lamphere Capital Management; O'Toole is managing director of the London Underground; and Wilson is co-chairman of Northwest Airlines.

"We remain confident that our proposed slate of five highly qualified director nominees can help create a stronger CSX for the benefit of all of its stakeholders," TCI and 3G officials said.