CNBC's Faber: Activist Shareholders Taking Significant CSX Stake
Warren Buffett isn’t the only one interested in railroads. Activist shareholders are eyeing railroad operator CSX, which could be contributing to Wednesday’s surge in the stock, CNBC’s David Faber reported.
CSX disclosed in a 10Q filing that the Children’s Investment Fund, a well-known activist fund based in the U.K., as of March 15 filed under the Hart-Scott Act to acquire more than half a billion dollars of CSX stock, Faber said.
The fund also advised CSX in March that "it currently holds a significant economic position through common stock ownership and derivative contracts tied to the value of CSX stock," Faber said.
CNBC reported earlier this month that Warren Buffett's Berkshire Hathaway has invested in three railroads. It became the largest shareholder in Burlington NorthernSanta Fe , acquiring a 10.9% stake in the nation's second-largest railroad.
Buffett also told CNBC that Berkshire invested about $700 million in another, unnamed North American railroad and slightly less than that in a third railroad. That news boosted rail stocks.
CSX is trading at all-time highs Wednesday, despite issuing first-quarter results that missed Wall Street expectations. Strong pricing trends and higher sales also offset a difficult environment, analysts said.