Subject: csx and the rails, Barrons,
" CSX has been under pressure to find a deal that would expand its rail network ever since rivals Norfolk Southern and Union Pacific agreed to a tie-up that would create a transnational railway. Now, the activist fund Ancora is raising the stakes, warning CSX to act quickly or risk impairing its long-term value.

The hedge fund sent a letter to CSX earlier this month and made it public on Tuesday telling it to pursue talks with Berkshire Hathaway-owned BNSF Railway and the Alberta-based Canadian Pacific Kansas City Limited. It urged the board to officially say it’s working with advisors to explore options.
CSX told Barron’s that it welcomes all opportunities to enhance shareholder value and that it appreciates the input of its shareholders and engages regularly with them. But Ancora worries that CSX might miss out on opportunities if it waits, according to the letter, which criticizes management.
The letter suggests a tie-up with Canadian Pacific may be the best option. To get around any difficulties with regulatory approval by the U.S. for an acquisition by a Canadian company, Ancora said a transaction could be structured as a reverse merger under which CSX acquires CPKC.
Union Pacific’s $71.5 billion merger with Norfolk Southern is likely to attract heavy regulatory scrutiny. While CSX hasn’t announced any specific talks, CEO Joseph Hinrichs said in July that there are many opportunities related to a possible merger and it was “open to talking about all those possibilities.”

" What’s Next: Ancora has about $10.5 billion of assets under management and was also an activist in Norfolk Southern. Its stake in CSX is about $100 million, according to The Wall Street Journal, which first reported the letter. But it said in its letter that the stake is still growing."