UPDATE 1-Hedge fund TCI criticizes CSX bylaw change

(Adds CSX comment, final paragraph)

NEW YORK, Feb 7 (Reuters) - British hedge fund Children's Investment Fund (TCI) on Thursday accused CSX Corp (CSX.N: Quote, Profile, Research, Stock Buzz) of making a "disingenuous" change to its corporate bylaws in the latest move in a months-long proxy campaign at the rail transportation company.

TCI, which last December said it planned to run a minority slate of five candidates for the CSX board at its upcoming annual meeting, told the company in a letter that the bylaw change disclosed on Wednesday would hamper shareholders from nominating company directors.

"We believe it is a disingenuous effort to appear shareholder-friendly while preventing shareholders from ever being able to nominate directors at a special meeting," said TCI in the Feb. 7 letter obtained by Reuters.

The letter is the latest in an ongoing war of words between TCI, which is leading a shareholder group holding an 11.8 percent stake in shares and derivatives in the company, and CSX, one of the nation's largest rail companies.

Andrew Siegel, a spokesman for CSX, said the bylaw amendments "strike the appropriate balance between giving shareholders the ability to request special shareholder meetings and protecting the resources of the company and the interests of all shareholders." (Reporting by Dane Hamilton; Editing by Gary Hill)