Activist hedge fund firm Soroban Capital Partners has succeeded in its efforts to force a leadership change at US rail company Union Pacific (UP) after Jim Vena was announced as the company’s new Chief Executive officer, according to a report by Associated Press.
Vena, a former Chief Operating Officer at UP, was Soroban’s favoured candidate for the role because of his past connection with the business and vast experience gained during a 40-year tenure at Canadian National.
News of his appointment, which takes effect next month, saw the company’s stock jumping by more than 10% on Wednesday to $238.
Soroban, which holds a $1.6bn stake in Union Pacific, has been been pressuring for improvements at UP because of “disappointing results” which saw the company’s profit fall by nearly 15% in the last quarter to $1.57 billion, or $2.57 per share, as it hauled 2% less freight and dealt with rising costs. A year ago Union Pacific made $1.835 billion, or $2.93 per share.
The railroad’s 5% decline in revenue to $5.96 billion also disappointed with analysts expecting $6.09 billion.
