Ruling on 'Swaps' in CSX Case Expected

Deal makers await a court ruling, expected in the next few days, in a long-running dispute between CSX, a railroad company, and two hedge funds, the Children's Investment Fund and 3G Partners.

In a highly anticipated decision, New York Federal Court Judge Lewis Kaplan is expected to rule on "swaps" which allow hedge funds to build up positions in companies without reporting that ownership in securities filings, The Wall Street Journal reports. 

CSX contends that the hedge funds used swaps intentionally to build a secret position as it sought to replace five members on CSX's board and in effect wants it wants them reported like regular shares to the Securities and Exchange Commission. Wall Street contends that a ruling that counts swaps as fully owned shares would set off what the WSJ called a "bureaucratic traffic jam."