SEC sides with TCI
| June 6th, 2008 |
|
| The SEC issued a letter supporting The Children's Investment Fund
(TCI) in its legal dispute with CSX, the railroad company. CSX sued
TCI for not disclosing its large stake in CSX acquired using equity
swaps. Under 13D rules, investors are required to disclose their stake
when they own more than 5% of a company. However, equity swaps do not
give investors the right to vote or sell the securities, meaning that
these positions do not have to be disclosed. In this case, TCI
disclosed that it owned 8% of CSX in December 2007 but it had started
building this through swaps starting in October 2006. This strategy is
often used by activist investors to build large stakes in companies.
The SEC stated that an equity swap agreement does not confer any
voting power over the shares and is generally not a basis to determine
if there is a plan to avoid disclosing stakes. |
|
|
For Detailed Investor Profiles on these Investors, click below: |
| | Childrens Investment Fund LP; | Childrens Investment Fund Management (UK) LLP; | TCI; | The Children's Investment Fund; | The Children's Investment Fund Foundation | 1 Comments
by David on June 15th, 2008
Here is an old article that provides some more background details.
http://www.nytimes.com/2007/12/20/business/20fund.html
More Recent Headlines
