CSX Urges Shareholders to Reject Tender Offer

CSX has urged its shareholders to reject an unsolicited “mini-tender” offer by TRC Capital Investment Corporation.

In a news release, CSX said TRC is seeking to purchase up to 4 million shares of CSX common stock at $34.75 per share in cash, which CSX management said is 0.43 percent below the $36.34 closing price of CSX common stock on March 18, the last trading day before the mini-tender began.

The CSX news release said the transportation company is not affiliated with TRC and does not endorse its unsolicited offer.

CSX said shareholders who have tendered shares to TRC should withdraw those shares by providing the written notice described in the offering documentation before the offer expires April 20.

Hedge Fund Sells CSX Shares

A CSX manifest freight heads west through Fontanet, Indiana, on the St. Louis Line on Oct. 12, 2019. Longer and fewer trains have been the rule since the carrier adopted the precision scheduled railroading operating model under the late E. Hunter Harrison.

The hedge fund that brought E. Hunter Harrison to CSX in early 2017 has sold most of its stake in the Class 1 carrier.

The Wall Street Journal reported this week that Mantle Ridge LP has sold nearly $1 billion of its stock in CSX.

The newspaper said it learned of the sale through filings with the U.S. Securities and Exchange Commission.

CSX bought back 4.7 million share of its stock that Mantle Ridge had held.

However, Mantle Ridge principal Paul Hilal has retained ownership of 3.4 million shares of CSX stock and continues to serve on the company’s board of directors.

Hilal had recruited Harrison to be the CSX chief executive officer even as he was still CEO at Canadian Pacific.

Harrison came to CSX after a failed bid by CP to merge with Norfolk Southern that drew opposition from NS management and various U.S. public officials.

At CSX Harrison implemented the precision scheduled railroading operating model. He died on Dec. 17, 2017, less than a year after taking the helm at CSX.