Investors trying to take control of Norfolk Southern railroad pick up key support

By JOSH FUNK
AP Business Writer

The activist investors trying to take control of Norfolk Southern are picking up key support. But the railroad’s CEO promised Monday to fight the takeover attempt because he believes his strategy is the best in the long run. Ancora Holdings’ bid has gained the backing of one of the major proxy advisory firms, one of the railroad’s biggest customers and two of its largest labor unions. The main issue is whether CEO Alan Shaw’s strategy of keeping additional resources on hand during a downturn and his investments in safety are the best course for the railroad. Norfolk Southern that has been in the spotlight ever since its fiery 2023 Ohio derailment. Ancora argues a dramatic overhaul is needed to bring Norfolk Southern’s profits in line with its peers.