Ocean Sound

Stuff that matters

Billionaire Chris Hohn’s TCI Fund Management nominated four independent directors to Canadian National’s (CNR.TO) board, a day after Kansas City Southern (KSU.N) divulged plans to accept a buyout offer from Canadian Pacific Railway Ltd (CP.TO).

Canadian Pacific has offered $27.2 billion in a cash-and-stock deal, compared with Canadian National’s $29.6 billion offer.

“We did not seek a proxy fight, but without urgent action CN’s operational and financial performance will continue to lag its peers under a board that lacks the right railroad experience and operational expertise,” TCI’s Hohn said in a statement on Monday.

TCI also reiterated its call to replace Canadian National Chief Executive Officer Jean-Jacques Ruest with former Union Pacific (UNP.N) executive Jim Vena.

Canadian National said once it receives a requisition from TCI, which owns over 5% in the railroad operator, for a meeting of its shareholders, it will review it and comment further in due course.

TCI’s nominees include: Gilbert Lamphere, chairman of freight rail company MidRail Corp; Allison Landry, an independent director with XPO Logistics (XPO.N); Rob Knight, former chief financial officer of railroad operator Union Pacific Corp (UNP.N); and Paul Miller, a former Canadian National executive.

The investment firm said last week it expected to nominate at least five new directors to Canadian National’s board, which has 11 directors.