Former CP CEO teaming with investor to target CSX railroad

MarketsAssociated Press

The executive who orchestrated the financial turnaround of Canadian Pacific railroad over the past five years is teaming up with an activist investor to target CSX railroad.

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Shares of CSX, based in Jacksonville, Florida, are up 17 percent at the opening bell Thursday.

Hunter Harrison announced his retirement from CP Wednesday, and then told the Wall Street Journal about his plans. Harrison is reportedly working with investor Paul Hilal, who left Pershing Square last year to start his own hedge fund, which the paper reported has raised more than $1 billion for a single investment.

Harrison, 72, came out of retirement in 2012 to lead Canadian Pacific after Pershing Square Capital took a large stake in the railroad and forced management changes.