Foreign interest in CSX sparks alarm

WASHINGTON, June 5 (UPI) -- A foreign investment group's attempt to win five seats on U.S. rail company CSX's 12-member board has sparked alarm in Washington, sources said.

The Defense Department said it initiated an "internal assessment" of the investment firm, The Children's Investment Fund, based in London.

"We welcome investment in this country. But we have to make sure these are economic investments and not politically motivated." said Sen. Evan Bayh, D-Ind., one of a group of senators who alerted the Treasury Department of their concerns.

The Treasury Department is reviewing the senators' letter, a spokeswoman said.

"They are anonymous and invisible to government regulators," the letter addressed to Treasury Secretary Henry Paulson says.

Snehal Amin, a founding partner of TCI, called the investigation of the investment group "scare-mongering," USA Today reported.

The rail company, CSX, is deemed critical as it serves U.S. military bases and transports nuclear material, the paper reported.