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South Norfolk (NYSE:NSC) +5.3% post-market Wednesday following Wall Street Journal report that an investor group led by Ancora Holdings has built a stake of about $1 billion in the railroad and has appointed a majority slate of directors to the company’s board of directors in an attempt to oust CEO Alan Shaw.
Norfolk Southern (NSC) has reportedly met with the Ancora-led group in recent weeks, and the group’s board candidates are said to have addressed a number of issues, including how the company has handled last year’s big train derailment in Ohio and what they see as Shaw’s project. failure to achieve operational objectives.
According to the report, hedge funds Sachem Head Capital Management and DE Shaw also recently started building their stakes in Norfolk Southern (NSC), although the size of those positions could not be determined.
Fourth-quarter results last week showed a 19% drop in earnings and a 5% decline in revenue from year-earlier levels, as the railroad struggles with declining demand from lumber and coal suppliers , among others.