Court of Appeals Next Stop for CSX
CSX will take its case against the two hedge funds with which the company’s fighting a proxy battle to New York’s highest court, CEO Michael Ward announced on Mad Money Thursday.
The decision comes just a day after a federal judge ruled that those hedge funds, TCI and 3G Capital, illegally acquired a major position in CSX but would not strip them of their voting shares. Ward said his company plans to bring the case to New York’s Court of Appeals “tomorrow.”
TCI and 3G Capital have been trying to oust Ward as a way to unlock value in CSX, but the CEO stands by his record. CSX has been in the top 5% of the S&P 500 over the past three years, he said, “and we’re not done.” Ward called the company’s guidance “the most aggressive guidance in the industry,” projecting earnings-per-share growth of 18% to 21% on a compound annual growth rate through 2010.
“We’re not done creating value here,” Ward said.
Performance or not, though, TCI and 3G may hold enough voting shares in the end to get that they want. Unless Ward can drum up enough support from mom-and-pop retail shareholders, Cramer told the CEO, “I think you’re going to lose your job.”
Watch the video for the full story on CSX’s proxy battle with TCI and 3G Capital.
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