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Norfolk Southern Corp. has slammed the activist investor calling for the firing of the railroad operatorâs CEO after a derailment Saturday in eastern Pennsylvania involving three of the companyâs trains.
The National Transportation Safety Board is investigating a collision and derailment involving the companyâs trains, the agency said on Saturday. The incident reportedly left train cars derailed along a riverbank in Lower Saucon township, outside of Bethlehem, Pa., although there were no injuries or hazardous-materials concerns, according to Norfolk Southern
NSC,
âNorfolk Southern crews and contractors remain at the derailment site,â the company said in a statement provided to MarketWatch Monday. âSite cleanup and track work resumed Sunday afternoon after the NTSB released the site back to us. We will continue to fully support the NTSBâs investigation. Norfolk Southern will learn from this incident as we constantly strive to improve safety.â
Related: Norfolk Southern urges shareholders to reject activist investorâs takeover plan
In early 2023, the derailment of a Norfolk Southern train in East Palestine, Ohio, thrust the issue of rail safety into the national spotlight.
On Saturday, Ancora Holdings Group, which owns a large equity stake in Norfolk Southern, called for âthe immediate terminationâ of Alan Shaw, the railroad operatorâs CEO, following the most recent derailment. âAn incident like this, which is drawing national news coverage and resulting in more embarrassment for the railroad, should put an end to the Boardâs unsustainable efforts to save a tainted CEO with no long-term future,â Ancora said in a statement.
Ancora recently launched a takeover bid for Norfolk Southern, which the railroad operator has urged its shareholders to reject.
Related: One year after Norfolk Southernâs East Palestine derailment, rail safety is still in the spotlight
On Monday, Norfolk Southern also hit back at the activist investorâs call to fire Shaw in the wake of the latest derailment. âWe believe that a change in leadership at Norfolk Southern would be highly disruptive to our operations, our workers, and the North American supply chain,â the company said in a statement emailed to MarketWatch. âThe pursuit of a reckless and short-sighted strategy would upend the execution of our balanced strategy that is providing safe service, enhancing productivity, and driving smart growth.â
The companyâs shares rose 1% Monday, outpacing the S&P 500 indexâs gain
SPX
of 0.2%.
On Monday, UBS upgraded Norfolk Southern to buy from neutral and also raised its price target to $302 from $238. âWe are upgrading NSC to Buy from Neutral because we expect stronger performance in NSCâs merchandise network,â UBS analyst Thomas Wadewitz wrote in a note.
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