Proxy battle at CN heats up with activist investor defending efforts to seek change
BNN Bloomberg
The proxy battle between Canadian National Railway Co. and a leading shareholder has heated up with TCI Fund Management Ltd. defending itself from "inaccurate and misleading information" about its efforts.
MONTREAL -- The proxy battle between Canadian National Railway Co. and a leading shareholder has heated up with TCI Fund Management Ltd. defending itself from "inaccurate and misleading information" about its efforts.
The British-based activist investor says its request for a special meeting of shareholders in March to push a slate of four new directors and seek a change in CEO is to hold CN's board accountable.
TCI denied the railway's claim that it is in a conflict of interest by being the largest shareholder of rival Canadian Pacific Railway Ltd. in addition to being the second-largest CN investor.
It says its CN investment is valued at US$4.3 billion, larger than its US$3.7-billion investment in CP and US$1.2-billion investment in Union Pacific.
Like many other CN shareholders, TCI says its ownership in both Canadian railways is because it is a firm believer in the long-term success and growth the railroad industry.
TCI says it is not a dissident shareholder that only recently acquired its stake to assert effective control of the railway. It says it has owned CN shares since 2018 and is seeking to enhance the value for all shareholders by pushing for changes.
