Ancora Issues Statement on the CSX Board's Decision to Heed Shareholder Feedback and Initiate a CEO Change
Believes Appointment of Steve Angel, Who Possesses Strong M&A Experience, Positions CSX for Success in the New Era of the Transcontinental Railroad
Expects CSX and Other Railroads to Become More Proactive Following President Donald Trump's Positive Statements About the UNP-NSC Transaction
Ancora Holdings Group, LLC (collectively with its affiliates, "Ancora" or "we"), a shareholder of CSX Corp. (NASDAQ: CSX) ("CSX" or the "Company"), today issued the below statement.
Fredrick D. DiSanto, Chairman and Chief Executive Officer of Ancora Holdings Group LLC, and James Chadwick, President of Ancora Alternatives LLC, commented:
"We applaud the CSX Board of Directors for heeding shareholder feedback and terminating former CEO Joe Hinrichs. This follows Ancora's disclosure of its August 2025 letter that laid out the facts about Mr. Hinrichs' value-destructive tenure and urged the Board to terminate him if he could not quickly position CSX to catch up to the railroads that have embraced the need for transcontinental service in the United States. As we expected, Mr. Hinrichs botched the opportunity and, if anything, appeared to try to fight the tailwinds of consolidation.
With President Donald Trump and other policymakers recently expressing enthusiasm for the benefits of a transcontinental railroad, CSX and other Class I railroads have no choice but to embrace the industry's new realities. Although Steve Angel is not a railroader by trade, his M&A pedigree and value creation record indicate his appointment is an initial step in the right direction for CSX. We expect the Board and Mr. Angel to be far more proactive when it comes to pursuing multiple opportunities to increase shareholder value and identifying a willing partner to merge with. Furthermore, with renewed leadership, we anticipate Mr. Angel will evaluate the full leadership team in order to restore the operational excellence that was a key tenet of CSX's past success.
In closing, Ancora continues to purchase shares of CSX and hopes to have a strengthened relationship with the Company if leadership continues taking the right steps to maximize value. It is regrettable that Mr. Hinrichs' actions forced us to go public and loudly push for a leadership change. This should be a cautionary tale for all corporate leaders who consider putting their own agenda ahead of shareholders' best interests."
About Ancora
Founded in 2003, Ancora Holdings Group, LLC offers integrated investment advisory, wealth management, retirement plan services and insurance solutions to individuals and institutions across the United States. The firm is a long-term supporter of union labor and has a history of working with union groups and public pension plans to deliver long-term value. Ancora's comprehensive service offering is complemented by a dedicated team that has the breadth of expertise and operational structure of a global institution, with the responsiveness and flexibility of a boutique firm. Ancora Alternatives is the alternative asset management division of Ancora Holdings Group, investing across three primary strategies: activism, multi-strategy and commodities. For more information about Ancora Alternatives, please visit https://www.ancoraalts.com/.
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