Canadian National says investor's shakeup drive 'misguided'

Canadian National sharpened its criticism of the investor pressuring it to make changes at the railroad

OMAHA, Neb. -- Canadian National has sharpened its criticism of the investor pressuring it to make changes to its operations and replace its CEO following its failed attempt to acquire the Kansas City Southern railroad.

The criticism of London-based investment firm TCI Fund came as Canadian National on Monday set March 22 as the date for a special shareholder meeting to vote on TCI's demands.

At the meeting, shareholders will vote on the investment fund's plan to nominate four new directors at Canadian National who would then help choose a new CEO for the railroad. TCI has been critical of CN's failed efforts to acquire Kansas City Southern and it argues that Canadian National isn't doing enough to improve its own operations.

Canadian National says TCI hasn't offered many details of its plan to improve the railroad. It also argues that TCI has a clear conflict of interest because, in addition to owning 5% of CN's stock, it owns roughly 8% of rival Canadian Pacific's stock. After sparring all summer over the acquisition, Canadian Pacific is now set to move forward with its $31 billion purchase of Kansas City Southern.