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Pacific Union Corp. (New York Stock Exchange: UNP) said he is looking for a successor to replace CEO Lance Fritz to run the rail operator.
Union Pacific’s board plans to name a successor to take over as CEO role this year, according to a statement from the company the previous Sunday.
The Union Pacific news comes after a WSJ report the previous Sunday that hedge fund Soroban Capital Partners was pushing to replace Fritz. Soroban is a large Union Pacific (UNP) shareholder with a stake of more than 1% valued at around $1.6 billion.
Soroban is said to want rail veteran Jim Vena, Union Pacific’s chief operating officer from 2019 to 2020, to take over the top job, replacing Fritz, according to the WSJ. Soroban argues that Union Pacific’s (UNP) share price could double in two years under Vena.
Union Pacific (UNP) said in the statement that its board had been “actively engaging” with Soroban Capital since 2017, though Soroban told the rail operator in recent discussions that he planned to take the talks to a public level.
“Union Pacific has been my home for 22 years and I am confident that now is the right time for the next Union Pacific leader to take the helm,” Fritz said in the statement. “I look forward to working with the Board as we identify our next CEO to lead the Company into the future.”
Union Pacific (UNP) shares have fallen 21% over the past year. The company reported fourth-quarter results last month that fell short of the top and bottom results.