Activist Hedge fund firm Toms Capital Investment Management has requested a meeting with the board of CSX after building a stake in US railroad operator, according to a report by Reuters citing unnamed people familiar with the matter.
The move has fuelled speculation the firm could push for a merger in the wake of heightened deal activity across the sector.
Led by Benjamin Pass, Toms Capital disclosed ownership of 5.6 million CSX shares as of 30 June. The move comes as Union Pacific finalises its $71.5bn acquisition of Norfolk Southern, a transformational transaction that has intensified expectations of further rail consolidation, particularly with the Trump administration signalling a softer stance on antitrust.
CSX, valued at around $68bn, has indicated it is open to exploring options to enhance shareholder value, while activist pressure is building. Fellow hedge fund Ancora Holdings this week urged the company to pursue a merger or face a potential proxy fight, criticising CEO Joe Hinrichs for weak returns and operational missteps.
While Toms Capital typically avoids high-profile campaigns, Pass has a track record of advocating for mergers at major US companies, including US Steel and Kenvue.
