JACKSONVILLE, Fla., July 22 /PRNewswire-FirstCall/ -- CSX Corporation today issued the following statement in response to a letter sent by the TCI Group to the CSX Board of Directors:
The Company believes that three points are worth making.
First, vote counts in contested elections always take time. The time period for this review is not unusual. The value of the process has been proved in the fact that the process has already identified errors in the preliminary report, which have been confirmed by the independent inspector of election. The review continues in good faith.
Second, the uncertainty in the vote count is significant enough to matter to the ultimate composition of the Board.
Third, the letter misstates the record in the litigation. The U.S. District Court did not flatly refuse to sterilize the votes. The U.S. District Court made clear that if the law were more certain, it would prevent the TCI Group's voting of 6.4 percent of the outstanding shares of CSX. Recognizing the importance of the issues, the Appellate Court agreed to hear the appeal on an expedited basis. The one thing that was certain in the litigation is that the U.S. District Court found the TCI Group had violated the securities laws with respect to its activities in CSX stock. This finding compels the CSX Board to continue to proceed with diligence as it discharges its duties fully with respect to this election.
CSX will proceed quickly and continue to keep open the lines of communication with respect to the status. Whatever the ultimate outcome, the CSX Board will work constructively to continue providing outstanding value for shareholders.
The Company noted that, in addition to the customary review and challenge period, the voting results are subject to the outcome of pending litigation between the Company and the TCI Group before the U.S. Court of Appeals for the Second Circuit.
About CSX
CSX Corporation, based in Jacksonville, Fla., is one of the nation's leading transportation companies, providing rail, intermodal and rail-to-truck trainload services. The company's transportation network spans approximately 21,000 miles, with service to 23 eastern states and the District of Columbia, and connects to more than 70 ocean, river and lake ports. More information about CSX Corporation and its subsidiaries is available at the company's web site, http://www.csx.com/.
Forward-looking statements
This information and other statements by the company contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act with respect to, among other items: projections and estimates of earnings, revenues, cost-savings, expenses, or other financial items; statements of management's plans, strategies and objectives for future operation, and management's expectations as to future performance and operations and the time by which objectives will be achieved; statements concerning proposed new products and services; and statements regarding future economic, industry or market conditions or performance. Forward-looking statements are typically identified by words or phrases such as "believe," "expect," "anticipate," "project," "estimate" and similar expressions. Forward-looking statements speak only as of the date they are made, and the company undertakes no obligation to update or revise any forward-looking statement. If the company does update any forward-looking statement, no inference should be drawn that the company will make additional updates with respect to that statement or any other forward-looking statements.
Forward-looking statements are subject to a number of risks and uncertainties, and actual performance or results could differ materially from that anticipated by these forward-looking statements. Factors that may cause actual results to differ materially from those contemplated by these forward-looking statements include, among others: (i) the company's success in implementing its financial and operational initiatives, (ii) changes in domestic or international economic or business conditions, including those affecting the rail industry (such as the impact of industry competition, conditions, performance and consolidation); (iii) legislative or regulatory changes; (iv) the inherent business risks associated with safety and security; and (v) the outcome of claims and litigation involving or affecting the company.
Other important assumptions and factors that could cause actual results to differ materially from those in the forward-looking statements are specified in the company's SEC reports, accessible on the SEC's website at http://www.sec.gov/ and the company's website at http://www.csx.com/.
