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mahatmakanejeeves

(56,890 posts)
Thu Jan 19, 2017, 05:02 PM Jan 2017

Rail stocks surge as Hunter Harrison joins push for CSX overhaul

I wasn't expecting that. I was updating my DRIP account info, and I was taken aback by the price disparity between yesterday's closing and the current price.

Rail stocks surge as Hunter Harrison joins push for CSX overhaul

Frederic Tomesco, Scott Deveau and Thomas Black

Bloomberg News

Published Thursday, Jan. 19, 2017 12:31PM EST

Last updated Thursday, Jan. 19, 2017 12:31PM EST

CSX Corp. jumped the most on record after news that outgoing Canadian Pacific Railway Ltd. Chief Executive Officer Hunter Harrison is teaming up with an activist investor to shake up the least efficient U.S. railroad. ... Paul Hilal, who worked for years with billionaire hedge fund manager Bill Ackman, is looking to install Harrison in a leadership position at CSX, according to people familiar with the matter. Harrison announced his retirement ahead of schedule Wednesday from Canadian Pacific, where he partnered with Mr. Ackman in an effort to combine with CSX and its eastern U.S. competitor, Norfolk Southern Corp.

A Harrison-Hilal campaign would create another industry boardroom drama less than a year after Mr. Harrison and Mr. Ackman abandoned their attempts to take over Norfolk Southern. Harrison made Canadian Pacific into one of the industry’s best performers after taking over as CEO in 2012 and previously solidified Canadian National Railway Co.’s status as the leanest North American railroad before retiring in 2009. That followed an overhaul of Illinois Central.
....

CSX declined to comment. The shares surged 18 per cent to $43.60 at 11:46 a.m. in New York after earlier rising as much as 19 per cent for a record intraday gain. Other carriers also rose, with Norfolk Southern advancing 4.1 per cent and Canadian Pacific climbing 4.6 per cent.
....

Mr. Harrison, 72, stepped down from Canadian Pacific on Wednesday, months ahead of schedule, forfeiting $118-million in awards and benefits. A separation agreement gives him a “limited waiver” of his non-competition obligations, the company said Wednesday.

I will get a link to Trainorders shortly. (ETA) And here it is:

Eastern Railroad Discussion > WSJ about Hunter and CSX

Trump to announce war with Canada in 5 ... 4 ... 3 ....
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Rail stocks surge as Hunter Harrison joins push for CSX overhaul (Original Post) mahatmakanejeeves Jan 2017 OP
Thanks. Lots of experience: elleng Jan 2017 #1
CSX May Not Be the Only Rail Target for Activist Investor mahatmakanejeeves Jan 2017 #2

elleng

(130,131 posts)
1. Thanks. Lots of experience:
Thu Jan 19, 2017, 06:31 PM
Jan 2017

Born in Memphis, Tennessee in 1944, Harrison began his railroad career in 1964 while attending University in Memphis when he worked as a carman-oiler for the St. Louis-San Francisco Railway ("Frisco&quot .[2] Harrison was later promoted to railroad operator with Frisco and, later, with Burlington Northern Railroad (BN) following that company's acquisition of Frisco in 1980. Harrison was consistently promoted at BN, eventually being appointed Vice-President - Transportation as well as Vice-President - Service Design.[3]

Harrison in 1989 left the BN and secured a job with the executive team at the Illinois Central Railroad (IC), first as Vice-President and Chief Operating Officer, culminating with his appointment as President and Chief Executive Officer from 1993 to 1998. Following the acquisition of IC by Canadian National Railway (CN) in 1998, Harrison was appointed Vice-President and Chief Operating Officer by CN. Upon the retirement of Paul Tellier, he was appointed President and Chief Executive Officer of CN on January 1, 2003, serving in that position until his retirement on December 31, 2009.[citation needed]

During his time at CN, Harrison was named Railroader of the Year for 2002 by industry trade journal Railway Age as well as CEO of the Year for 2007 by the Globe and Mail's "Report on Business".[4] On April 29, 2009, CN announced the company's plan for succession in Harrison's position by appointing Claude Mongeau as his successor effective January 1, 2010. Following his service at CN, Harrison retired to his estate in Connecticut where he raises and trains horses for show jumping. Bound by a non-competition clause with CN, Harrison maintained a low profile serving as a director for the Belt Railway of Chicago as well as Dynegy Holdings LLC.[citation needed]

https://en.wikipedia.org/wiki/E._Hunter_Harrison

mahatmakanejeeves

(56,890 posts)
2. CSX May Not Be the Only Rail Target for Activist Investor
Tue Jan 24, 2017, 05:14 PM
Jan 2017
CSX May Not Be the Only Rail Target for Activist Investor

By THE ASSOCIATED PRESS JAN. 24, 2017, 3:18 P.M. E.S.T.

OMAHA, Neb. — The executive who led Canadian Pacific's financial turnaround may have a backup plan if his pursuit of CSX railroad gets derailed. ... Hunter Harrison announced his retirement from CP last week and is now reportedly targeting CSX with investor Paul Hilal, who left hedge fund Pershing Square last year and has raised more than $1 billion to start his own fund.

The terms of the 72-year-old Harrison's separation agreement with Canadian Pacific prohibits him from working at Canadian National, Union Pacific or BNSF railroads. But in addition to CSX, it also allows him to jump to Norfolk Southern or Kansas City Southern.

Edward Jones analyst Dan Sherman said CSX and Norfolk Southern are the most likely takeover targets. CP pursued mergers with both of those railroads under Harrison's leadership.

Both CSX and Norfolk Southern are poised to produce better profits because the sharp decline in coal demand over the past several years is slowing and both those railroads have been working to reduce costs, Sherman said. ... "These two make the most sense because he can make the most difference," Sherman said.
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