CSX Corp. v. Children's Investment Fund Management (UK) LLP

OPINION

LEWIS A. KAPLAN, District Judge.

Table of Contents

Background.518

I. Parties.518

II. Proceedings.518

III. Total Return Swaps.519

A. The Basics.519

B. The Purposes of TRSs .521

1. Short Parties.521

2. Long Parties.522

TV. The Events of Mid-2006 Until Late 2007.523

A TCI 523

1. TCI Develops a Position in CSX.523

2. TCI’s Leveraged Buyout Proposal.524

3. January through March 2007 .525

4. TCI Begins Preparing for a Proxy Fight.526

5. CSX Files Its 10-Q and Discloses that TCI Has an Economic Position.527

6. Proxy Fight Preparations Continue .528

7. TCI Concentrates its Swaps in Deutsche Bank and…