GE exits 3D-printing fight only slightly bruised 27 Dec 2017 The U.S. group ended a 15-month tussle for ownership of Sweden’s Arcam by buying hedge fund Elliott’s stake at a modest premium. GE should benefit from having full control of a technology critical to its aviation business, even if it nets Elliott’s Paul Singer a handsome profit.
Geely could be useful back-seat driver at Volvo 27 Dec 2017 Seven years after buying Volvo Cars, the Chinese group is acquiring Cevian’s 8.2 pct stake in the Swedish truckmaker. The activist gets a decent exit after 11 years, while Volvo gets help with electric vehicles and China. The risk is Geely is getting in at the top of the cycle.
Ebenezer Scrooge is ripe for shareholder activism 22 Dec 2017 Companies are swerving toward more active corporate giving and better conditions for workers. Investors should be pleased, but they might also have to recalibrate their idea of what makes a good company. One activist fund in particular isn’t feeling the festive spirit.
Oil shareholders try capping sorry governance well 21 Dec 2017 SandRidge adopted a poison pill to fend off investors unhappy with a recent deal. Hess faces another fight with Elliott. Exxon is only now allowing owners to talk to the board. The shareholder pushback is welcome, but the industry’s slow response leaves it exposed to other risks.
Five possible triggers of the next market shock 20 Dec 2017 It takes a catalyst to set off a downturn and other reagents to sustain it. Breakingviews runs through a few more and less obvious elements: central-bank shocks, wayward exchange-traded funds, doubts about “crisis alpha,” unforeseen hedge-fund trouble and, yes, crypto-currencies.
Hedge fund species merit careful classification 5 Dec 2017 Most peg the industry as managing more than $3 trln of assets. But as Winton Capital notes, it’s a broad spectrum, and hedge funds are hard to define. On narrower criteria like fees or the use of leverage they manage far less. The distinctions matter for investors and regulators.
LSE boardroom ceasefire is least bad outcome 29 Nov 2017 CEO Xavier Rolet is leaving the London Stock Exchange immediately, ending an activist campaign for him to stay on. Chairman Donald Brydon will step down in 2019. The compromise averts a longer and more damaging public row. But nobody emerges from the saga with much credit.
Akzo’s no-deal still worse than a good deal 22 Nov 2017 The Dutch paint maker is temporarily solo after talks with U.S. peer Axalta foundered. That combination, good on paper, was challenged by the two companies’ uneven size and likely job cuts. Even so, Akzo’s future if it’s determined to remain single is unappealing.
Legacy legal wrangles badly timed for Guy Hands 21 Nov 2017 The private equity tycoon who sued his adviser after the financial crisis is feuding with creditors of Four Seasons care homes. The battle hinges on whether lenders have a claim over some assets. The story of excessive and too-complex financing won’t help Hands’ next fundraising.
P&G proxy fiasco is black mark on CEO David Taylor 15 Nov 2017 Five weeks after the Tide and Pampers maker triumphantly declared victory in keeping Nelson Peltz off its board of directors, an independent arbiter says the activist won. It's hard to conjure up a better illustration of P&G's insularity than its handling of the whole affair.
The Exchange: Mike Novogratz 15 Nov 2017 From Goldman Sachs partner to Fortress founder and now bitcoin trader, the chief executive of Galaxy Investment Partners has something of a Midas touch. He swings by Times Square to talk about how he's making a killing with a new hedge fund betting on crypto-currencies.
China’s Sina fires up governance Wayback Machine 8 Nov 2017 Days after escaping a board insurgence effort, the web outfit issued new stock that hands control to its chairman. It retroactively aligns Weibo's parent with Silicon Valley structures just as momentum swings against them. It's a bad turn for China Inc that also cost $500 mln.
Bill Ackman is losing his touch 7 Nov 2017 Fewer than one ADP shareholder in four backed the activist's bid for board seats at the payroll processor. That puts his Pershing Square hedge fund on a three-year losing streak after failed bets at Valeant and Herbalife – and makes it easy for other firms to ignore his demands.
NXP is key piece in $105 bln chipmaker jigsaw 7 Nov 2017 If Qualcomm wants to fight an unsolicited offer from Broadcom, one logical move is to complete its own $38 bln deal for automotive chip specialist NXP. A year later, that price looks low. Qualcomm now has a double reason to raise it – but the timing is out of its hands.
Europe’s IPO failures are a problem overshared 3 Nov 2017 Two UK companies scrapped their offerings, while Russian power group En+ priced at the bottom of its range. Several recent listings have flopped in their first days of trading. The one thing still rising is the number of banks working on IPOs. That’s part of the problem.
Chicago School gets $125 mln for being wrong 1 Nov 2017 The university’s tradition leans heavily towards free and efficient markets. Hedge-fund boss Ken Griffin’s name and cash – generated in an industry that depends on markets being inefficient – will now endow the economics department. Kudos to Griffin and Chicago’s open mind.
Arconic’s boardroom peace comes just in time 23 Oct 2017 The car and aircraft-parts maker resolved its management struggle with activist Elliott Management by tapping GE’s Charles Blankenship as CEO. A fresh earnings miss means he’ll need to hit the ground running. Troubles in a key new engine program are slowing progress on margins.
Tootsie Roll bet could leave return cavity 18 Oct 2017 Hedge fund Spruce Point reckons the secretive confectionary firm may be worth half its $2 bln value. The short seller may have a point. But Tootsie Roll’s future rests on the health of octogenarian CEO and major shareholder Ellen Gordon. Betting against candy in general is safer.
Viewsroom: Activists keep the fight alive 12 Oct 2017 Nelson Peltz narrowly lost his acrimonious bid for a P&G board seat. Honeywell’s decision to spin off two small units was less than Dan Loeb lobbied for. These are temporary setbacks. Past experience and their financial firepower make shareholder activists a powerful force.
KKR sets a collision course with Elliott in Japan 12 Oct 2017 The buyout firm raised its bid for a Hitachi subsidiary, offering outside investors $1.3 bln. That price might not satisfy activist shareholder Elliott. KKR may need to sweeten the deal, within reason - its reputation in Tokyo for disciplined buying is worth preserving.