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Ancora-led group takes $1 bln stake in Norfolk Southern in bid to oust CEO - WSJ
Ancora-led group takes $1 bln stake in Norfolk Southern in bid to oust CEO - WSJ
Reuters
January 31, 20247:48 PM EST • Updated a day ago
A Norfolk Southern train rests near the University of North Carolina's energy generation plant, after delivering coal to the facility, in Chapel Hill, North Carolina, U.S. August 11, 2022. REUTERS/Jonathan Drake/File Photo
Jan 31 (Reuters) - An Ancora Holdings-led investor group has taken a roughly $1 billion stake in Norfolk Southern (NSC.N), opens new tab and nominated a majority slate of directors to the railroad operator's board in a bid to oust CEO Alan Shaw, the Wall Street Journal reported. ... The director slate includes former Ohio Governor John Kasich and Sameh Fahmy, who was an executive at railroad operator Kansas City Southern, the report said on Wednesday, citing people familiar with the matter.
In the past few weeks, Norfolk Southern - among the top-five largest railroad operators in North America by revenue - has met with the group and the group's director nominees have raised a number of issues including how the firm handled a train derailment last year and what they view as Shaw's failure to hit operating targets, the report added.
A {Norfolk Southern} train comprising three locomotives and 150 freight cars derailed near East Palestine, Ohio, last February, sending a cloud of smoke over the town and causing temporary evacuation for thousands of residents.
Norfolk Southern last week reported fourth-quarter profit below analysts' estimates, hurt by lower revenue across the U.S. railroad operator's merchandise, intermodal and coal businesses.
{snip}
Reuters
January 31, 20247:48 PM EST • Updated a day ago
A Norfolk Southern train rests near the University of North Carolina's energy generation plant, after delivering coal to the facility, in Chapel Hill, North Carolina, U.S. August 11, 2022. REUTERS/Jonathan Drake/File Photo
Jan 31 (Reuters) - An Ancora Holdings-led investor group has taken a roughly $1 billion stake in Norfolk Southern (NSC.N), opens new tab and nominated a majority slate of directors to the railroad operator's board in a bid to oust CEO Alan Shaw, the Wall Street Journal reported. ... The director slate includes former Ohio Governor John Kasich and Sameh Fahmy, who was an executive at railroad operator Kansas City Southern, the report said on Wednesday, citing people familiar with the matter.
In the past few weeks, Norfolk Southern - among the top-five largest railroad operators in North America by revenue - has met with the group and the group's director nominees have raised a number of issues including how the firm handled a train derailment last year and what they view as Shaw's failure to hit operating targets, the report added.
A {Norfolk Southern} train comprising three locomotives and 150 freight cars derailed near East Palestine, Ohio, last February, sending a cloud of smoke over the town and causing temporary evacuation for thousands of residents.
Norfolk Southern last week reported fourth-quarter profit below analysts' estimates, hurt by lower revenue across the U.S. railroad operator's merchandise, intermodal and coal businesses.
{snip}