TCI to appeal against U.S. court ruling on CSX
Fri Jun 20, 2008
The Childrens Investment Funds proxy battle with
U.S. railroad operator CSX has taken a potentially
precedent-setting turn, with a U.S. court declaring that
London-based TCI and Brazil-based activist fund 3G breached
U.S. securities laws with respect to how they built their stake
in the company.
U.S. District Court Judge Lawrence Kaplan ruled that TCI and 3G
failed to make timely disclosures about the size of their stake
in CSX and the fact that they were acting as a group in the
run-up to the proxy fight, noting that much of their position
in CSX was in the form of total return swaps.
The controversy surrounding the case centers on whether
TCI and fellow activist fund 3G of Brazil breached U.S.
ISSN: 2151-1845 / CDC10004H
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