The country’s largest railway will grant TCI two seats on the board as part of the settlement
Canadian National Railway Co. is expected to announce a new chief executive officer Tuesday and that it has reached a settlement with activist investor TCI Fund Management Ltd., according to people familiar with the matter.
The country’s largest railway will grant TCI two seats on the board as part of the settlement, the people said, asking not to be identified because the matter is private.
Representatives for Canadian National declined to comment. A TCI representative couldn’t be reached for comment.
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The announcement comes three months after Jean-Jacques Ruest resigned amid pressure from major shareholders. Ruest said in October that he would step down, a surprise announcement that came less than four years after he took the job.
TCI, which is run by billionaire Chris Horn and is CN’s second-largest holder, has been pushing for changes at the railway and had nominated four directors to its board. TCI also called on the company to replace Ruest with Jim Vena, but Vena told the board in December that he’s no longer interested in becoming CEO.