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Activist Ancora may turn to a reliable tactic to enhance value at Norfolk Southern

·1 min


Norfolk Southern Faces Proxy Fight from Activist Investor #

A wealthy advisory firm, Ancora Advisors, has announced its intention to lead a proxy fight against Norfolk Southern, a major US railway company. Ancora, whose assets under management total $9 billion, plans to replace a majority of Norfolk Southern’s board and install a new CEO. Norfolk Southern has been underperforming its peers in the railroad industry, and Ancora believes that implementing a precision scheduled railroading (PSR) strategy, as successfully done by other companies in the sector, will lead to improved profitability. Ancora’s plan includes nominating a majority slate of directors, including former politicians and railroad executives, and potentially engaging in a proxy fight if settlement discussions fail.