CSX Extends Board Nomination Deadline

By Paul Ziobro 

CSX Corp. on Friday extended the deadline for board nominations, buying more time for an activist hedge fund to try to install railroad executive Hunter Harrison as chief executive.

The Friday deadline was pushed to Feb. 24, the company said.

CSX is squaring off against Mantle Ridge LP, a hedge fund run by Paul Hilal, a former top lieutenant of billionaire Bill Ackman's Pershing Square. The firm is pushing CSX to replace CEO Michael Ward with Mr. Harrison, the recently retired CEO of Canadian Pacific Railway Ltd. who has been lauded for his operational expertise. Mr. Hilal is also trying to win several new board seats, people familiar with the matter said.

Mr. Harrison last month negotiated an early retirement as CEO of Canadian Pacific Railway Ltd., forfeiting $89 million in compensation in exchange for waiving a non-compete agreement.

The Wall Street Journal reported that the 72-year-old has his sights set on CSX, where he believes he can improve the railroad company's operating ratio, a closely watched measure of expenses as a percentage of revenue, using his so-called precision railroading strategy that seeks to run fewer trains and stick to schedules, which can ensure more timely deliveries and more efficient use of locomotives.

CSX has said it welcomes the input of shareholders but remains supportive of the company's strategy.

Write to Paul Ziobro at [e-mail]

(END) Dow Jones Newswires

February 10, 2017 11:05 ET (16:05 GMT)

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