On the wrong track? Company
Canadian National Railway faces additional pressure from a major investor who wants it to abandon its effort to buy the U.S. railroad Kansas City Southern.
London-based investment firm TCI Fund — which owns about 5% of CN’s stock — on Monday called for a shareholder meeting to nominate four new directors. TCI has said it thinks CN should overhaul its board, get a new CEO and refocus its efforts on improving its own operations.
Canadian National did not immediately respond to the demand, but on Sunday said it would evaluate all of its strategic options after Kansas City Southern picked Canadian Pacific’s $31 billion offer over CN’s higher bid.
Canadian National had bid $33.6 billion to acquire Kansas City Southern but regulators rejected a key part of its plan. Under the terms of its merger agreement with KCS, CN still has five business days to possibly sweeten its offer.