Court Backs CSX But Proxy Fight Continues

June 13, 2008—As the annual meeting of CSX scheduled for June 25 nears, the proxy fight pitting the corporation directors against a takeover effort by two hedge funds—the Children’s Investment Fund of Britain and 3G Capital Partners, a Brazilian fund—gets fiercer.  On June 12 a federal judge ruled in favor of CSX, finding that the hedge funds had violated securities laws.  But the judge also ruled that there was  nothing effective he could do and he refused to bar the hedge funds from voting their shares, as CSX had requested, at the coming meeting.  In an email to employees, CEO Michael Ward wrote, “We remain committed to protecting the interests of all CSX shareholders, and encourage employee shareholders to support the CSX Board by voting the WHITE proxy card.”  Read the CSX release.  For related articles from TCU, click here for May 2008 story and click here for December 2007 article.  Here is the story from The New York Times.