Citi Comments On CSX Director Departure (CSX)

Citi provided color in a research report published today regarding the news that CSX's CSX Director Alex Behring will not seek re-election.

In the report, Citi states, " Alex Behring announced he will not pursue re-election to CSX's board in May, a move which marks the end of activist hedge fund representation at the company. We view Mr. Behring's departure partly as a validation of 3G and TCI's view that the company was capable of significantly greater operational potential. Nevertheless, we believe the more important takeaway is that management rose to the challenge of a three-year freight recession to become an industry leader in cost discipline and operational efficiencies, driving a significant improvement in profitability. Once regarded as the laggard, we now view CSX's management as one of the more forward thinking and successful at executing on its operating plan."

Shares of CSX closed Wednesday at $75.88, up 0.29% from Tuesday's market close.