Trains.com

CSX better be ready EHH is coming in for a landing.

9809 views
80 replies
1 rating 2 rating 3 rating 4 rating 5 rating
  • Member since
    May 2003
  • From: US
  • 25,265 posts
Posted by BaltACD on Friday, January 20, 2017 3:27 PM

blue streak 1
BALT:   Who is your fortune teller ?  You seem to have been told the  perfect time to retire ?

No fortune teller.  Seeing individuals that I had previously respected advance to high positions of power and making decisions and policy that in my humble opinion were improper and wrong and they thus lost my respect.  If you can't respect the leaders you might as well distance yourself from the organization if you can.

Never too old to have a happy childhood!

              

  • Member since
    December 2007
  • From: Georgia USA SW of Atlanta
  • 11,919 posts
Posted by blue streak 1 on Friday, January 20, 2017 1:32 PM

BALT:   Who is your fortune teller ?  You seem to have been told the  perfect time to retire ?

  • Member since
    May 2003
  • From: US
  • 25,265 posts
Posted by BaltACD on Friday, January 20, 2017 1:26 PM

oltmannd
EHH has ditched claim to C$118M, so he's not in this for the money.  How about CSX gives him the Service Design job.  Might be a AVP level job at CSX (just a director level job at NS). It's where he staked his claim.  

If he's after validation, he'd take it.

But, if it's just an ego trip....

When you are 72 - everything other than a Wal-Mart greeter is a ego trip.

Never too old to have a happy childhood!

              

  • Member since
    January 2001
  • From: Atlanta
  • 11,971 posts
Posted by oltmannd on Friday, January 20, 2017 1:00 PM

EHH has ditched claim to C$118M, so he's not in this for the money.  How about CSX gives him the Service Design job.  Might be a AVP level job at CSX (just a director level job at NS). It's where he staked his claim.  

If he's after validation, he'd take it.

But, if it's just an ego trip....

 

 

-Don (Random stuff, mostly about trains - what else? http://blerfblog.blogspot.com/

  • Member since
    June 2009
  • From: Dallas, TX
  • 6,952 posts
Posted by CMStPnP on Friday, January 20, 2017 1:48 AM

Harrison will be carried away on a stretcher grasping his heart after one meeting with CSX Executives I can guarantee it.    

"We thought we would do better this quarter as projected but ran into unexpected headwinds, blah, blah, blah"..........he-he-he.     Oh the past memories of me being a patient investor in that company.....:)

  • Member since
    May 2003
  • From: US
  • 25,265 posts
Posted by BaltACD on Thursday, January 19, 2017 9:09 PM

Never too old to have a happy childhood!

              

  • Member since
    March 2008
  • 112 posts
Posted by OWTX on Thursday, January 19, 2017 4:10 PM

Two-bit greenmailers. 

  • Member since
    July 2006
  • 1,529 posts
Posted by NKP guy on Thursday, January 19, 2017 3:46 PM

   Is it possible that today's CSX will soon be playing the role of the Erie Railroad in that famous late 19th century drama for control of that company by some very rapacious people?  

  • Member since
    October 2014
  • 37 posts
Posted by SteamRoller88 on Thursday, January 19, 2017 3:43 PM

Can anybody confirm that Harrison and Creel are related? For the past 5 years I have heard Creel is his son-in-law... is this true? I hear he is from some, and others say no. Whats the answer?

  • Member since
    May 2003
  • From: US
  • 25,265 posts
Posted by BaltACD on Thursday, January 19, 2017 2:56 PM

Read somewhere today that Hilal is only capitalized to $1B for this 'fight'; doesn't sound like much of a war chest.

Never too old to have a happy childhood!

              

  • Member since
    November 2005
  • 4,190 posts
Posted by wanswheel on Thursday, January 19, 2017 2:09 PM

The guy who makes EHH newsworthy again

Getty Images caption: “Paul C. Hilal, partner with Pershing Square Capital Management LP, listens during a Canadian Pacific Railway Ltd. town hall meeting in Toronto, Ontario, Canada, on Monday, Feb. 6, 2012. Canadian Pacific Railway Ltd.'s support for Chief Executive Officer Fred Green doesn't make sense because the company's performance trails all of its North American peers, the railroad's largest investor said.”

 

Excerpt from The Globe and Mail, Jan. 19

http://www.theglobeandmail.com/globe-investor/investment-ideas/rail-stocks-surge-as-hunter-harrison-joins-push-for-csx-overhaul/article33668968/

CSX Corp. jumped the most on record after news that outgoing Canadian Pacific Railway Ltd. Chief Executive Officer Hunter Harrison is teaming up with an activist investor to shake up the least efficient U.S. railroad.

Paul Hilal, who worked for years with billionaire hedge fund manager Bill Ackman, is looking to install Harrison in a leadership position at CSX, according to people familiar with the matter.

 

Excerpt from Strategic Intuition by Zong Z. Peng

https://strategicintuition.co/2015/04/19/value-investing-with-legends-paul-hilals-pershing-square-lecture-at-columbia-business-school-2/

Today (April 14th, 2015) Paul Hilal from Pershing Square came to speak during the “Value Investing with Legends Class.” In his introduction of Paul, Professor Big G (Bruce Greenwald) said this, “The public face of Paul Hilal’s fund is Bill Ackman, the talent to a large extent is standing in front of you.”…

In July 2011, through conversation with his younger brother, Paul learned that there is an under-performing Canadian railway company that investors have lost a lot of money on and have been complaining about, so add the sector to his watching list. By early August, decided to focus on looking at the sector…

Paul cold called Hunter Harrison out of the blue to learn about the railway industry. Hunter is the former CEO of Canadian National Railway, a turnaround legend that fixed two railroad companies, and had retired 18 months prior. Hunter did not know Paul before but spent two and half hour talking to him (Paul’s intelligence, persona, and his status certainly helped I think).

Paul didn’t tell Hunter what he was looking for, didn’t want Hunter to know he was interested in CP, didn’t want Hunter to know he had a thesis, and did not want to bias Hunter’s view, as people (no matter how smart they are) have a tendency to tell you what you would like to hear.

Saw Hunter’s knowledge, insights, communication skills, and passion for railroad continued to burn bright, knew this is the guy to turnaround the company.

On September 27th 2011, persuaded Hunter to come out of retirement.

RME
  • Member since
    March 2016
  • 2,073 posts
Posted by RME on Thursday, January 19, 2017 2:02 PM

NKP guy
But how can we be sure EHH is the answer to prayer?

Depends on what he prayed for. 

Remember the joke that ends "Well, Cheryl had a little sin in her life..."?

  • Member since
    December 2007
  • From: Southeast Michigan
  • 2,983 posts
Posted by Norm48327 on Thursday, January 19, 2017 1:54 PM

Sounds like it has the makings of a hostile takeover with Pershing Square as the leader and Harrison in a supporting role. Shades of "The Children's Fund"?

Norm


  • Member since
    July 2006
  • 1,529 posts
Posted by NKP guy on Thursday, January 19, 2017 1:52 PM

BaltACD:  I stand corrected, but the Board must have thought him great, at one time anyway.

Ulrich:  that's pretty funny, actually.  Big Smile

But how can we be sure EHH is the answer to prayer?   After all, "By their works ye shall know them,"  and, from "Two" Corinithians, "And no wonder, for Satan himself masquerades as an angel of light."

Things aren't always as they seem.

 

  • Member since
    February 2003
  • From: Guelph, Ontario
  • 4,818 posts
Posted by Ulrich on Thursday, January 19, 2017 12:54 PM

NKP guy

CSX thought John Snow was a great executive, too.  

It's time to add CSX to my prayer list.

 

 

Harrison on the way, prayer answered. 

  • Member since
    May 2003
  • From: US
  • 25,265 posts
Posted by BaltACD on Thursday, January 19, 2017 12:28 PM

NKP guy
CSX thought John Snow was a great executive, too.  

It's time to add CSX to my prayer list.

Nobody that I know thought John Snow was great - as the value of the company and it's shares shrank under his command - then he got a $69M 'golden parachute' to become Treasurer of the United States under Bush.  Michael Ward has fought long and hard to have the company recover from Snow's years.

Never too old to have a happy childhood!

              

  • Member since
    July 2006
  • 1,529 posts
Posted by NKP guy on Thursday, January 19, 2017 12:01 PM

CSX thought John Snow was a great executive, too.  

It's time to add CSX to my prayer list.

  • Member since
    November 2003
  • From: Rhode Island
  • 2,289 posts
Posted by carnej1 on Thursday, January 19, 2017 11:50 AM

Ulrich

Sounds exciting if that happens. Now, with business friendly Trump in the White House and his protege Keith Creel running CP, perhaps they will revisit a potential merger of the two.

 

The Canadian Government could potentially Nix that...It'll be interesting to see what happens.

 

"I Often Dream of Trains"-From the Album of the Same Name by Robyn Hitchcock

  • Member since
    February 2003
  • From: Guelph, Ontario
  • 4,818 posts
Posted by Ulrich on Thursday, January 19, 2017 10:43 AM

Sounds exciting if that happens. Now, with business friendly Trump in the White House and his protege Keith Creel running CP, perhaps they will revisit a potential merger of the two. The dynamics have certainly changed from two years ago. I doubt Harrison would be interested in simply improving the Railroad's performance.. he's been there and done that several times, and he's 72 years old. Moreover, he's given up alot at CP.. a million dollar a year consulting fee plus plus plus.. Likely he has bigger plans, and his interest in mergers is well known. The next couple of years are going to be interesting..

  • Member since
    March 2016
  • From: Burbank IL (near Clearing)
  • 13,540 posts
Posted by CSSHEGEWISCH on Thursday, January 19, 2017 8:38 AM

EHH comes across as railroading's version of "Chainsaw Al" Dunlap, a so-called turnaround artist who saved failing companies for the shareholders by slicing and dicing them into profitability.  He apparently had no real skills in actually operating any profitable remnants.

The daily commute is part of everyday life but I get two rides a day out of it. Paul
  • Member since
    April 2016
  • 1,447 posts
CSX better be ready EHH is coming in for a landing.
Posted by Shadow the Cats owner on Thursday, January 19, 2017 7:38 AM

CSX from all reports is getting a New CEO.  Guess who they are getting E Hunter Harrison.  All I have to say and this is from someone in a compieting transporation  business is I wish those employees well.  We all know his methods from looking at both CN and now CP I just hope CSX can weather the storm so to speak that is him.  NS better be ready to pick up a bunch of traffic from customers he loses. 

Join our Community!

Our community is FREE to join. To participate you must either login or register for an account.

Search the Community

Newsletter Sign-Up

By signing up you may also receive occasional reader surveys and special offers from Trains magazine.Please view our privacy policy