Activist Ancora Urges CSX To Explore Merger Amid Rail Consolidation

Ancora Holdings, a significant shareholder in CSX Corporation, is urging the company to actively pursue merger opportunities with either BNSF Railway Company or Canadian Pacific Kansas City Limited to remain competitive amid ongoing rail industry consolidation. The call to action comes in response to the pending Union Pacific-Norfolk Southern merger, which Ancora warns could leave CSX at a strategic disadvantage if it fails to explore alternatives. Ancora criticizes CSX's CEO Joe Hinrichs for deteriorating operational performance and poor shareholder returns since his 2022 appointment, highlighting a worsening operating ratio and excessive spending. The investor group has demanded the formal retention of an investment bank to facilitate merger discussions and has threatened a proxy fight or CEO replacement if the board does not act swiftly. Ancora expresses concern that CSX’s current standalone future is bleak and stresses the urgency of strategic realignment to protect shareholder value. Despite attempts to engage privately, Ancora accuses CSX’s board of poor oversight and insufficient responsiveness to these critical issues.