JACKSONVILLE, Fla. — Activist investor Ancora Holdings, which recently announced it had taken an increased stake in CSX, is increasing pressure on the railroad to pursue a merger.
The hedge fund today released a letter it had sent to the CSX board on Aug. 6, saying the board “needs to announce in the near term that it is working with identified third-party advisors to explore a range of merger options,” and arguing that “no railroad has more to lose than CSX” if the Union Pacific-Norfolk Southern merger takes place.
The move came on the same day that Reuters reported another activist investor, Toms Capital, has requested a meeting with the CSX board, raising expectations it, too, would push for a merger.
Ancora’s letter also attacked the performance of the railroad under CEO Joe Hinrichs, as it had when Ancora Alternatives President James Chadwick discussed the company’s investment in CSX during a July interview on CNBC [see “Activist investor may target CSX …,” Trains.com, July 31, 2025].
Ancora’s letter, signed by Chadwick and Ancora Holdings CEO Fredrick D. DiSanto, claims that under Hinrichs, CSX has shown “anemic stockholder returns,” “disastrous operational performance” (which it defines as the railroad’s increase in operating ratio from 58% to 67%), “poor personal selection” in the form of “a leadership team of junior varsity executives,” and its failure to pursue merger discussions.
The letter says it is “imperative” the railroad holds merger discussions with both BNSF and CPKC “to explore all options for maximizing shareholder value.
“The reality is that BNSF is a cash buyer that would bring a highly disciplined approach to any negotiations, rendering CSX in a vulnerable position if it does not have alternative parties to speak with. We believe CPKC, under the leadership of Keith Creel, represents a compelling partner for CSX as it looks to compete in a new railroading environment.”
The letter suggests the Ancora could push to have Jamie Boychuk, the CSX chief operating officer ousted in August 2023 that Ancora calls a “railroad operations superstar” (while misspelling his name as Boychuck) take over from Hinrichs. “If a deal cannot be struck,” the letter reads, “we assume it will not take us running a proxy contest to ensure a qualified operator, like Mr. Boychuck or someone with similar credentials, replace Mr. Hinrichs.”
Ancora waged an unsuccessful proxy battle to replace Norfolk Southern CEO Alan Shaw in 2024, although three of its candidates were elected to the NS board, and Ancora and the railroad reached a settlement late last year [see “Norfolk Southern to add new board member …,” Trains.com, Nov. 14, 2024]. Had Ancora won the proxy fight, it planned to install Boychuk as chief operating officer.
Labor organizations decried Ancora’s latest move, with the Transportation Communications Union/International Association of Machinists and Brotherhood of Railroad Carmen saying the firm would seek short-term profits at the expense of CSX’s long-term health.
“Ancora’s plans are nothing more than another version of Precision Scheduled Railroading, and the entire country has seen the damaging effects that model has had on our industry,” Artie Maratea, national president of TCU/IAM, said in a statement. It said Boychuk held a senior position during a period of significant service issues and that “it is difficult to imagine Mr. Boychuk being a part of any business model that seeks to keep CSX Transportation moving in the right direction.”
Said BRC General President Don Grissom, Our members’ ability to do their jobs in properly inspecting and repairing freight cars is critical. We have seen firsthand the devastating results at other railroads when these priorities are ignored.”
Under its current leadership, CSX has made real progress. Maratea continued: “CEO Joe Hinnrich’s leadership played a large part in reaching a timely agreement without invoking mediation for the first time in recent history. Nothing is perfect but we’ve come a long way and we need to keep moving forward. I am confident Ancora does not have the long term interest of CSX or its employees at heart.”
Meanwhile, the Reuters report says that while it is unclear what Toms Capital seeks out of its meeting request with the CSX board, but Benjamin Pass, head of the hedge fund, has a history of pushing for mergers at other companies. Ancora says another hedge fund, Third Point, has also taken a stake in CSX.
— Updated at 7 p.m. CT with unions’ statement on Ancora involvement at CSX.
