(Reuters) -CSX Corp on Monday has appointed Steve Angel as its top boss, replacing Joe Hinrichs, as the railroad operator fends off pressure from an activist investor while facing industry consolidation.
Shares of the company rose about 3% in premarket trade.
Angel succeeds Joe Hinrichs, who will work closely with the board and management to help with the transition, CSX said.
He brings on more than four decades of experience, including at Linde plc and 22 years at General Electric, where he was involved in locomotive and rail operations.
The announcement comes after CSX faced activist pressure from Ancora Holdings to pursue merger options to replace Hinrichs.
Hedge fund Toms Capital Investment Management also requested a meeting with the board at CSX in August after buying a stake in the U.S. railroad operator.
U.S. railroad leader Union Pacific and Norfolk Southern earlier announced a surprise $85 billion deal, fueling speculation that CSX would explore a merger of its own.
Since news of that deal, the industry’s largest ever buyout, speculation has been mounting that more big mergers are likely to follow, especially as the Trump administration eases antitrust concerns.
CSX has said that it is open to all ways to boost the stock price for shareholders.
(Reporting by Nathan Gomes in Bengaluru; Editing by Mrigank Dhaniwala)
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