Canadian National Railway said Wednesday Chief Executive Jean-Jacques Ruest is stepping down.
Photo:
Christinne Muschi/Bloomberg News
Activist investor Elliott Management Corp. has a big stake in
Canadian National Railway Co.
CNI 5.23%
, people familiar with the matter said, adding to pressure on the railroad after its CEO resigned following a failed bid for rival
Kansas City Southern.
Canadian National, facing a proxy fight from another activist, TCI Fund Management Ltd., said Wednesday Chief Executive
Jean-Jacques Ruest
is stepping down. TCI is seeking four board seats in a vote set to take place early next year.
TCI, which has a more than 5% stake and opposed the Kansas City Southern bid, has named
Jim Vena,
a former executive of railroad giant
Union Pacific Corp.
, as its choice for CEO. Elliott also supports Mr. Vena, who is being considered by Canadian National’s board, the people said.
Elliott, whose stake is smaller than TCI’s but still substantial, has been in talks with Canadian National for weeks, they said. Details of the discussions couldn’t be learned.
Write to Cara Lombardo at cara.lombardo@wsj.com
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