Jacob Taylor submits: CSX Corporation (CSX) is still refusing to seat two of four dissident director nominees as it hopes an appeals court decision will disqualify a block of shares voted by activist hedge fund Children’s Investment Fund. The independent inspector of elections has found that four of five TCI nominees won election during the June 25th annual meeting, but if the appeals court upholds the fact that TCI violated securities laws, it could mean a complete loss for the activist hedge fund. So, why should investors be watching this situation closely? Activist hedge funds are well known for unlocking value in their target companies. In the case of CSX, TCI believed that it could profit from a potential leveraged buyout of the firm back in December 2006. By January of 2007, TCI had acquired more than 10% of the company and was discussing the plan with investment bankers. By April, TCI knew it was not going to get what it wanted passively and began a proxy contest. Complete Story » ...
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