Ruh Roh - Hunter at CSX

[Lenny53]

https://globenewswire.com/news-release/2017/02/14/917199/0/en/CSX-Calls-Special-Meeting-in-Light-of-Extraordinary-Mantle-Ridge-and-Hunter-Harrison-Requests.html

[Blazeman]

CSX can't announce a date for the special meeting until their proposal is approved by the SEC (not the football one we love, Phil). Given statutory time requirements, we're talking about mid-April when HH could be installed.

[signalmaintainer]

Hmm. CSX has been a messed-up operation since... well... since inception. Really, how much more damage can he do?

Good point!

Couldn't get his CP/NS merger to go through, so he's picking up his toys and going elsewhere. Question is, who'll want to merge with CSX (not that the STB is likely to be too warm to another mega-merger)?

[Lenny53]

Good point!

Couldn't get his CP/NS merger to go through, so he's picking up his toys and going elsewhere. Question is, who'll want to merge with CSX (not that the STB is likely to be too warm to another mega-merger)?

Hunter explored merging CP with CSX and gave up before looking at NS.

[signalmaintainer]

I hadn't kept up with all of EHH's doings once he left CN until the aborted CP/NS merger last year.

It will be interesting to see what his end-game turns out to be at CSX. I can't see Berkshire Hathaway or UP being that interested right now in an end-to-end merger with CSX, but one never knows. ...

[C855B]

... I can't see Berkshire Hathaway or UP being that interested right now in an end-to-end merger with CSX, but one never knows. ...

I can't see their being interested at all. CSX is renown for minimalist plant maintenance. For either of the big Western roads to bring CSX up to their standards would crush their value due to the 20 to 30 years of massive capital commitment needed to make it happen. NS would be a much more appetizing merger target for the big two.

That said, if UP or BNSF ate NS, the other would be more or less obligated to acquire CSX. In that light, if somebody decides to make a move, it could turn into a bidding war for NS. At that point I would dump my positions in both UP and B-H, because whoever kills their value by overpaying for NS, the other will get the booby prize.

[C855B]

The stage is set: http://www.businessinsider.com/csx-ceo-michael-ward-is-retiring-2017-2

[C855B]

OMG, it gets better and better: http://www.firstcoastnews.com/news/local/data/business/csx-to-layoff-1000-management-positions/410873111

[Blazeman]

Wall Street reporting service had a sit-down with HH and came away with impression HH is not looking to pursue any mergers. Don't think they came up with a scheme where CSX would be the pursued party.

[Ed Kapuscinski]

OMG, it gets better and better: http://www.firstcoastnews.com/news/local/data/business/csx-to-layoff-1000-management-positions/410873111

Wow.

I know, if I worked at CSX, and I saw this guy was coming, I'd be more than happy to take a buy out or whatever they might offer.

[mu26aeh]

What I love is how the Wall Street articles speak of HH as a savior, someone who has repeatedly revitalized and brought companies back from the brink with no mention how he does it.  And hearing of stories from people in the industry, people who worked for his companies, speak of his slash and burn tactics, running with skeleton crews and equipment etc

[signalmaintainer]

It's generally understood -- at least for the Class 1 I work for, and so I will extrapolate for the others -- that the ranks of management are too fat. Lots of dead weight to cut out. And most of what I'm referring to are not supervisory positions.

That being said, a significant number of these CSX exempts likely still retain their union seniority, even though most have not been in the ranks for years or even decades. They've paid their retention fees to their respective unions. This means some will be eligible to place bumps. There could be a lot of displacement occurring in the scheduled (union) positions, which does not bode well for morale.

[Lenny53]

Hurry up and wait

http://trn.trains.com/news/news-wire/2017/02/23-csx-deadline-ext

[Lenny53]

Four fekkin years

https://www.wsj.com/articles/csx-agrees-to-hire-hunter-harrison-as-ceo-1488829040

[Lenny53]

more details

http://trn.trains.com/news/news-wire/2017/03/06-ehh-at-csx