Hedge Funds and CSX Votes
| June 12th, 2008 |
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| A federal judge ruled that TCI and 3G Capital Partners, two hedge
funds involved in a proxy fight at CSX, had violated securities laws
by not disclosing their positions earlier. However, he did not ban
them from voting their shares at CSX's annual meeting on June 25 as
the company wanted. He stated that he could not do so because of a
Second Circuit precedent. The two firms own 8.7 percent of the
company, and have a 12.3 percent position in equity swaps in the
company. TCI and 3G Capital Partners are pushing a slate of five
directors at the CSX meeting. The judge also declared that any
penalties the fund could get would come from the SEC. Although CSX has
been trying to persuade the SEC to act in this case, the only position
it has taken so far has been on the side of the hedge funds through a
legal interpretation sent to the judge. The hedge funds stated that
they plan to appeal the ruling that they violated securities laws,
while CSX has not yet announced whether they plan to appeal to block
the funds' votes. |
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For Detailed Investor Profiles on these Investors, click below: |
| Cory Bailey; | Marc Mezvinsky; | Pavel Begun | | Children's Investment Master Fund; | Childrens Investment Fund LP; | Childrens Investment Fund Management (UK) LLP; | Synergy Fund; | TCI; | The Children's Investment Fund; | The Children's Investment Fund Foundation | More Recent Headlines
