Monday, April 27, 2009

Troubled TCI sells its stake in CSX

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The Children’s Investment Fund (TCI), a self-appointed advisor to companies that it perceives to be troubled, is having troubles of its own.

In a worsening global economy, TCI has lost around 40% of its value and some of its top managers. Now it has been disclosed that TCI has sold is entire 4.5% stake in CSX, where it won four board seats last year in a bitter proxy fight waged with the help of 3G Capital Partners Ltd., another hedge fund.

A filing with the Securities and Exchange Commission revealed that TCI sold its 17.8 million shares at prices ranging from $28.38 to $30.09. CSX shares were selling at $29.44 in trading early Monday afternoon.

TCI Managing Partner T.C Hohn had already decided to give up his seat on CSX's board this year, though he will retain 5,150 shares of his own in the company. The other three TCI nominees are seeking reelection at CSX’s annual meeting May 6.

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