Norfolk Southern Corp (NYSE: NSC) is in focus this morning following a report that Ancora Holdings is close to winning board representation at the freight railroad operator.
How many seats has Ancora won on $NSC board?
Counting of votes is still ongoing but the activist hedge fund has already secured adequate support to win seats on the board of $NSC, as per sources that talked to Reuters on condition of anonymity.
Norfolk Southern is scheduled for an annual meeting of shareholders later today. The total number of seats that Ancora has secured remains unclear, the sources added.
The news arrives shortly after the NYSE listed firm reported its financial results for the first quarter that fell shy of Street estimates.
Norfolk Southern stock is down some 12% versus its year-to-date high at writing.
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Ancora Holdings wants to oust CEO Alan Shaw
Neither Norfolk Southern nor Ancora Holdings have so far commented on the Reuters report on Thursday.
The activist investor has nominated a total of seven candidates that it’s convinced could help improve the financial performance of $NSC and help it achieve its operational targets.
Note that proxy advisory firms including Glass Lewis, Institutional Investor Services, and Egan-Jones are in favour of letting Ancora have representation on the board of Norfolk Southern.
The activist hedge fund wants to oust Alan Shaw – chief executive of the Atlanta-headquartered firm as well. Norfolk Southern shares currently pay a dividend yield of 2.33%.
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