Activist investor Elliott Investment Management has built a sizable stake in Canadian National Railway Co. (TSX:CNR) and is now pushing the company to improve its financial results.
The Florida-based hedge fund has held discussions with CN Rail in recent weeks, ahead of the surprise announcement that Chief Executive Officer (CEO) Jean-Jacques Ruest would step down in early 2022.
The involvement of Elliott Investment Management opens a new front in the squeeze on CN Rail, which is in the midst of a proxy contest with billionaire Chris Hohn’s TCI Fund Management.
TCI has criticized the Montreal-based railway for underperforming its peers under Ruest and has been pressing for industry veteran Jim Vena to take over as CEO. Elliott is also supportive of Vena’s appointment.
It’s unclear how many shares Elliott owns and the nature of its discussions with CN Rail.
CN Rail gained as much as 6.6% after the announcement of Ruest’s departure and a strong third-quarter earnings report, closing at an all-time high of $161.53.
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