CSX appoints new CEO as US railroad operator battles activist pressure

By Nathan Gomes

(Reuters) -CSX Corp has named veteran executive Steve Angel its CEO, replacing Joe Hinrichs, as the U.S. railroad operator fends off pressure from an activist investor against the backdrop of rapid consolidation in the industry.

The company's shares rose about 3% in morning trading on Monday.

Angel headed industrial gas firm Praxair, and became the CEO of the combined company in 2018 following its deal with Linde.

He became the chair in 2022 after he stepped down from the CEO role. He plans to retire from Linde's board in January.

Angel began his career at General Electric where he worked directly with the locomotive and rail operations. He held a variety of management positions for over 22 years at the U.S. industrial conglomerate.

CSX has faced pressure from Ancora Holdings to pursue merger options or to replace Hinrichs.

Ancora on Monday welcomed Angel's move to CSX and forecast that he would be ready to find another railroad to merge with.

Since Union Pacific and Norfolk Southern's surprise $85 billion merger in the industry's largest-ever buyout, there has been mounting speculation about more big mergers, including one involving CSX.

Easing antitrust concerns under the Trump administration have only added to the optimism.

"The incoming CEO may position the rail more strategically, though don't expect this to suggest any near-term deal activity," said TD Cowen analyst Jason Seidl.

CSX has said it was open to exploring all ways to boost the value of its stock. The company on Monday reiterated that it expects full-year volume growth.

Toms Capital Investment Management also requested a meeting with the board at CSX in August after buying a stake.

(Reporting by Nathan Gomes in Bengaluru; Editing by Mrigank Dhaniwala, Leroy Leo and Sriraj Kalluvila)

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• Goldman Sachs to acquire real estate company LCN for up to $410M
• Karman Line Acquisition prices $200M IPO on Nasdaq
• H2O America unit wins approval to acquire Quadvest in Texas