SEC Opposes CSX Opinion Of Ownership

Law360, New York (June 5, 2008, 12:00 AM EDT) -- The U.S. Securities and Exchange Commission has weighed in on a proxy fight between a railroad and two hedge funds, saying that CSX Corp.'s view on when a person or entity is a “beneficial owner” of a security is incorrect.

“The division disagrees with the issuer's legal interpretation,” Brian Breheny, deputy director of the division of corporation finance of the SEC, said in a letter Wednesday to the judge, Dow Jones reported. “Economic or business incentives aren't sufficient to create beneficial ownership under Rule 13d-3.”...
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