stock jumped 10% Monday on the news that the railroad will find a new chief executive, Wall Street analysts joined in the cheering. At least one firm upgraded its rating on the shares. Others said a CEO change will help the big railroad improve its lagging performance.
Union Pacific (ticker: UNP) said it is seeking a CEO just hours after a holder of $1.3 billion of its stock—Eric Mandelblatt, the managing partner of New York’s Soroban Capital Partners—released a letter and presentation decrying the performance of the current chief, Lance Fritz. The letter, made public on Sunday, notes that the railroad has struggled to increase freight volumes, and was called before regulators in December to account for its poor service.