White House creates its very own jobs crisis 21 Jul 2017 Press Secretary Sean Spicer quit after the hiring of financier Anthony Scaramucci. Donald Trump also fired his FBI director, undercut his Treasury secretary and regrets his attorney general pick. Just as U.S. employers wrestle with labor participation, so too does the president.
Peltz goes for the close shave at Procter & Gamble 17 Jul 2017 Unlike his last proxy fight at DuPont, the activist is taking a more surgical approach, lobbying for one board seat at the $223 bln razors-to-detergent conglomerate. Trian is also supporting management and not calling for a breakup. Shareholders would be daft to turn him down.
Viewsroom: Elon Musk’s Down-Under wager 13 Jul 2017 Tesla’s CEO is putting the firm’s reputation, and $50 mln, on the line in a deal to quickly provide energy storage to South Australia. Over in Texas, a battle is brewing between investment icons Warren Buffett and Paul Singer over a long-suffering and oft-wooed energy company.
Elliott tests one of Warren Buffett’s golden rules 11 Jul 2017 Paul Singer's hedge fund has cobbled a rival bankruptcy-exit plan for Energy Future, challenging Berkshire Hathaway's $9 bln deal. The new offer may be a stretch, but Buffett famously eschews competitive processes. He also needs approval from creditors, one of which is Elliott.
Jana’s EQT breakup pitch is short of fuel 6 Jul 2017 The activist fund reckons cutting the natural gas company in two rather than buying Rice Energy would boost its value by up to 50 pct. It’s coy with the details, though, and rivals’ multiples imply a far smaller gain. Without more information, Jana’s idea may sputter to a halt.
Lessons from Europe’s tricky trio of bank rescues 29 Jun 2017 Creditors saved Britain’s Co-operative Bank, Spain’s Popular was sold, and two Italian lenders received a bailout. Though circumstances differ, the common theme is that regulators remain wary of winding down troubled banks. New capital rules will eventually make the task easier.
Nestlé serves up only semi-sweet buyback 27 Jun 2017 Days after being put on the spot by Dan Loeb, the Kit Kat maker said it would repurchase up to $21 bln of shares over three years. It's an incremental step, like a review of the U.S. candy arm. Ignoring bigger issues, however, could allow the activist to marshal more support.
Stada fiasco has roots in flawed German M&A rules 27 Jun 2017 Bain and Cinven’s 5.3 billion euro offer for the drugmaker collapsed despite a 49 percent premium. While the bidders may have a second go, the debacle is a lesson in how investment strategies that exploit misguided takeover rules can go terribly wrong.
Viking blazes hedge-fund path with capital return 13 Jun 2017 The hedge-fund giant is replacing its CIO and returning $8 bln to investors after a spell of poor performance. Viking hopes to generate stronger returns by working with fewer assets. This could be a teachable moment for an industry struggling to justify its excessive fees.
Hong Kong draws short straw at hedge-fund jamboree 8 Jun 2017 Hedgies floated ideas from Sony to Indian DIY at the Sohn Hong Kong fundraiser. But when it came to the host city, two of the three pitches were short-selling takedowns. Dozens of HK shares sold off beforehand, on fears they could be targets. That is an indictment of the market.
Buyout mega-funds: bigger and hopefully boring 2 Jun 2017 Large buyout war chests are back, as seen by CVC and KKR’s multibillion-dollar pools. Mega-funds promise respectable returns, but with less risk than smaller peers. Or at least, they have done lately. With cash to splash and valuations high, the challenge is to remain unracy.
Elliott’s hard work is just starting at Arconic 22 May 2017 The activist fund’s deal ending its bitter fight with the car- and plane-parts maker strengthens its grip on the board. It also puts one of its picks into the ring to be CEO. That shifts Elliott’s role from attacking poor results and governance to showing it can improve them.
Active-passive battle will end in ceasefire 19 May 2017 Index-trackers are eating into traditional investment managers' business – and could soon own half of U.S. equities held in funds. Even so, managers can find refuge in some places, like emerging-country debt. Shrinking market share may also help active investors outperform.
Elliott turns activist hose on burning Bush 18 May 2017 Medical-software firm Athenahealth trades at a big discount to rivals after expanding poorly and often missing estimates. Elliott’s 9 pct stake in the $5 bln company should allow it to douse colorful and erratic founder Jonathan Bush’s role as boss or force an outright sale.
Elliott leaves slim Citrix pickings for LBO shops 16 May 2017 Private equity has tons of cash and loves software. So targeting the $13 bln remote-desktop-access company seems smart. Yet activist Elliott’s push for cuts and new execs has already paid off. Making Citrix an acquisition machine may mark a return to an inglorious past.
ValueAct practices what it preaches on succession 16 May 2017 The $16 bln hedge fund has made governance a signature issue in its activist approach. In handing over investing duties to longtime deputy Mason Morfit, founder Jeffrey Ubben is showing he can walk the walk. Other hedgies who hold on too long might learn from this example.
Whole Foods board changes whet activists’ appetite 10 May 2017 The $12 bln organic-food purveyor is replacing more than half of its board, a step to appease Jana Partners. But the fund, with 8 percent of shares, wants a sale, and others are pounding the table. As long as Whole Foods same-store sales keep declining, they’ll stay hungry.
Arconic takes battle of letters to Elliott 24 Apr 2017 The parts maker offered to back two of the activist's four board picks but accused Elliott of twice reneging on agreed compromises. The exit of CEO Klaus Kleinfeld after his own intemperate screed has not relieved the tensions. Regular shareholders may by caught in the crossfire.
Activism prods GAM in right direction 18 Apr 2017 The Swiss hedge fund group will review compensation and cap its CEO’s pay because of pressure from investor RBR. The activist’s more disruptive plans may not win backing from other investors. But it can claim credit for forcing change in an industry resistant to shakeups.
Fed fails self-audit with tardy Lacker ouster 4 Apr 2017 The Richmond Fed president quit after saying he had a hand in leaking policy details in 2012. It's a shock at an institution that hates surprises. The central bank’s slowness to examine itself may fuel demands for closer scrutiny – and sets a poor example for banks it regulates.