WASHINGTON — Surface Transportation Board Chairman Martin J. Oberman says he’s disappointed that executives from Ancora Holdings, the activist investor firm engaged in a proxy battle with Norfolk Southern, have yet to schedule a meeting to discuss its goals for the railroad.
Ancora Holdings Group Chairman and CEO Frederick DiSanto and Ancora Alternatives President James Chadwick wrote to Oberman on Feb. 5 to summarize their views about NS. They also wrote that they would be available to speak with Oberman about NS, CEO Alan Shaw, and the railroad’s board of directors.
Oberman’s office called Ancora the next day to arrange a meeting. “You responded by indicating that Ancora was not prepared to meet at that time, despite your offer,” Oberman wrote. “I am disappointed that you have not yet scheduled a meeting.”
Oberman, who will retire from the STB this year, added: “Given the concerns about your real goals for the company raised by numerous other rail stakeholders and by me over the past month, I would think a meeting to more fully discuss the future of NS would be beneficial. I await your response.”
Oberman has been highly critical of Ancora’s effort to gain a majority of seats on the NS board and oust Shaw and Chief Operating Officer Paul Duncan. The proxy contest poses a threat to the railroad industry and the U.S. economy and may prompt new regulations, Oberman told a shipper conference last month.
Regulators are concerned that Ancora’s short-term focus on cost-cutting could lead to another service crisis related to a shortage of train crews. “This effort by a Wall Street firm—with short-term dollar signs in its eyes—to strip resources out of a railroad, of course, is not new,” Oberman said at the Southeast Association of Rail Shippers conference.
Oberman also was skeptical of Ancora’s claim that its proxy battle was motivated by improving safety at Norfolk Southern. Ancora is based in Cleveland, about 90 miles from East Palestine, Ohio, the site of the disastrous Feb. 3, 2023, hazardous materials wreck involving a Norfolk Southern train.
DiSanto and Chadwick told Oberman that their investment in NS was about “much more than the pursuit of financial returns due to the disastrous tragedy in East Palestine, Ohio. This community is a short drive from us, meaning we have friends and loved ones directly impacted by the disaster.”
Why should Ancora meet with the STB? The STB is powerless in a proxy battle. Oberman is hand waving, even though he’s right. Short termism will certainly win (see BNSF) whether or not the rogue’s gallery of Ancora’s Neanderthal directors and executives assume office. Norfolk Southern tweaked PSR slightly, but it is how they continue run.
cuts to servise worketrs but more buck for investetrs
I have a rather strong feeling that those of us interested in railroads will be saddened by Mr. Oberman’s departure.
Ancora doesn’t want to meat with Mr Oberman. They know how he feels about this take over and the probability of them getting a big slap down. There waiting him out for retirement.
Ancora’s response is a bunch of crap. They have already stated how they will mis-manage NS with stringent PSR . And, it can not be called anything else. If they keep messing with Oberman they might get surprised by him.
Somehow I doubt that Ancora leadership had friends in East Palestine prior to the derailment.
James, how right you are !
Agreed! Ancora is just blowing smoke where the sun don’t shine. Ancora’s people and those of East Palestine are widely separated by net worth and social status.