CSX board decision may hint at ongoing talks with hedge fund

NEW YORK (AP) " CSX extended its deadline for board nominations, implying that talks with a hedge fund about control of the railroad may be ongoing.

Paul Hilal's hedge fund, Mantle Ridge, is attempting to install railroad executive Hunter Harrison at the head of CSX. Harrison announced his retirement from Canadian Pacific several weeks ago. On Friday deadline for nominations was pushed to Feb. 24.

Michael Ward is currently the CEO of CSX Corp.

Harrison came out of retirement in 2012 to lead Canadian Pacific after Pershing Square Capital took a large stake in the railroad and forced management changes. Harrison has used a strictly scheduled operating model to cut costs significantly at every railroad he has led. In addition to Canadian Pacific, Harrison also previously managed the Canadian National and Illinois Central railroads.

A year ago, Harrison led a failed Canadian Pacific bid to acquire Norfolk Southern railroad. Canadian Pacific abandoned its roughly $30 billion bid for Norfolk Southern Corp. after encountering opposition from the railroad, politicians and some customers.

Hilal left Pershing Capital last year to start

Shares of CSX Corp., based in Jacksonville, Florida, are trading near all-time highs.

This story has been automatically published from the Associated Press wire which uses US spellings

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