Norfolk Southern files new presentation disputing Ancora's claims

Norfolk Southern Corp. today filed with the U.S. Securities and Exchange Commission a presentation designed to correct what the company says are "false and misleading statements" made by Ancora Holding Group LLC, the activist investor that is campaigning to overhaul the NS board and replace President and CEO Alan Shaw.

NS officials today said that Ancora is overestimating the 12-month savings it says it will achieve if its proposed board candidates and executive leadership take over at NS.

Ancora's projected savings of $800 million over the first year, resulting in a 62% to 63% operating ratio, could not occur without the furlough of thousands of employees, NS officials said in their presentation.

"Ancora's misinformed savings estimates would only amount to $400 million, and to achieve the remaining $400 million savings in their plan, approximately 2,900 employee furloughs would be required, despite Ancora's assertions to the contrary," NS officials said in a press release.

The NS presentation also states that Ancora has disregarded the company's "successful implementation of a modern version of precision scheduled railroading," and dismissed the "decades of success and experience" of the railroad's recently hired Chief Operating Officer John Orr.

To review the NS presentation, click here.

Ancora's most recent presentation of its proposed plan for NS can be viewed here.

Shareholders will meet May 9 for their annual meeting, during which they will be presented two slates of board candidates: those proposed by current NS leadership and those proposed by Ancora, which is a major shareholder.