Activist Investor Ancora Demands CSX Pursue Merger or Oust CEO in Bold Power Play

Ancora Holdings just dropped the gloves—pushing railroad giant CSX toward a merger or leadership bloodbath.

The Pressure Cooker

Activists don't whisper—they roar. Ancora's pushing hard for a strategic shakeup, arguing current leadership's stuck in the slow lane. No patience for status quo operators when bigger plays loom.

Merger Mania or CEO Exit

Two paths forward: find a merger partner pronto, or show the CEO the door. Classic hedge fund tactics—force the board's hand with ultimatums wrapped in shareholder value rhetoric. Because nothing says 'alignment' like a threatened coup.

Because in high finance, if you're not disrupting, you're just riding the rails—and somebody's always eyeing your locomotive.

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Interestingly, Ancora had a long-drawn battle with Norfolk Southern last year, before striking a deal in November 2024.

CSX Faces Activist Investor Pressure to Consider Merger Deals

Ancora urged CSX to announce the hiring of an investment bank to explore strategic options and address investors’ concerns. The hedge fund believes that the company should aggressively explore merger deals, given the ongoing consolidation in the industry.

In fact, Ancora advised CSX to hold discussions with BNSF Railway Company, owned by Berkshire Hathaway () (), and Canadian Pacific Kansas City Limited to explore all options for maximizing shareholder value. The activist investor contended that CSX should consider a deal promptly, as regulators will have a “much easier time reviewing multiple rail mergers at once.”

Furthermore, Ancora explained that it wants CSX’s board to act with urgency, given “anemic” shareholder returns under the leadership of Hinrichs. The activist investor also accused the CEO of poor personnel selection, saying, “Hinrichs seems to have built a leadership team of junior varsity executives.”

Meanwhile, CSX said in a statement that it welcomes all opportunities that would increase its value and appreciates shareholders’ suggestions. 

Is CSX Stock a Good Buy?

Wall Street has a Moderate Buy consensus rating on CSX stock based on 13 Buys and seven Holds. The average CSX stock price target of $38.50 indicates 5.4% upside potential. CSX stock has risen 13% so far this year.