Ancora Holdings Wants a Ticket to Ride

Atlanta-based railroad company, Norfolk Southern, is currently facing a challenge from activist investors seeking to seize control of the company. The current board is urging shareholders to reject Ancora Holdings' bid and supports the existing management team and strategy.

Ancora Holdings argues that Norfolk Southern is neglecting to improve its efficiency, as its profits continue to disappoint and its operating ratio lags behind other major freight railroads. However, Norfolk Southern has been implementing precision-scheduled railroading since 2019, which involves running fewer, longer trains, on a tighter schedule. This approach has helped the company streamline its operations and reduce the need for additional resources.

To bring fresh perspectives without disrupting current plans, Norfolk Southern has nominated two new board members with transportation expertise, including a former CEO of Amtrak and a former U.S. Senator.

To its credit, Norfolk Southern has made significant investments in safety over the past year, following a fiery derailment in East Palestine, Ohio. The company has added a new braking system to all locomotives to improve braking efficiency and mitigate the risk of accidents. Safety first, right?

Will this takeover stay on track or will activist shareholders derail it before it reaches the next station?

More on this story from ABC News: https://abcnews.go.com/Business/wireStory/norfolk-southern-urges-shareholders-reject-activist-investors-takeover-107554090

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