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Social Clubs / Deranged Monkey Criticism


Subject:  Re: Let the Game Begin! Date:  7/10/2013  2:19 PM
Author:  bcs123 Number:  17646 of 26156

I'd wager a decent amount that CSX is the target.

1) CSX clearly fits the criteria Ackman mentioned. It is also arguably a pretty cheap stock and I think it fits the profile of the typical Pershing Square investment very well.
2) Pershing Square has successfully invested in railroads; they are currently invested in Canadian Pacific.
3) An activist has attempted to make waves at CSX before, the British firm The Children's Investment Fund (called "TCI") run by Chris Hohn.
4) There are a number of connections between the TCI bid for CSX and Pershing Square. One of TCI's board nominees was Alex Behring and he ended up serving on the CSX board from 2007-2011. Behring is currently the managing partner at 3G Capital. This is the Brazilian investment concern in which Jorge Paolo Lemann is involved. 3G is Berkshire's partner in the Heinz deal. Behring was CEO of Latin America's largest railroad for 7 years, ALL.
5) There are strong connections between 3G and Pershing Square. Behring is currently Chariman of Burger King. Ackman's blank check company, Justice Holdings, bought a 30% stake of Burger King from 3G in April 2012, so Pershing Square now has a significant position in Burger King.
6) TCI reached out at one point to Hunter Harrison to run CSX. Harrison is the guy who Ackman successfully recruited in 2012 to become CEO of Canadian Pacific, which has been a home run investment.

TCI presentation on CSX from 2008:

Pershing Square presentation on Burger King from 2012:
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