Shareholder Activism

Elliott’s friendly tech bet faces tough second act

28 January 2020

Shares in SAP are up 19% since the activist unveiled a stake. Investors seem to believe the $160 billion company will hit ambitious targets endorsed by Paul Singer’s fund. But tough competition and increasingly muddy governance mean there is limited scope for further quick wins.

Investors and EU can marginalize U.S. on climate

27 January 2020

Commerce Secretary Wilbur Ross says the White House might deem a European carbon tax on imports protectionist. That exposes one of the problems with regional solutions to global warming. Allying with global investors would help create more powerful sticks and carrots.

Capgemini victory over Elliott comes with baggage

27 January 2020

The French IT group won a $4.1 bln bid to take control of Altran, which the New York activist tried to veto. The victory is a coup for CEO Paul Hermelin, who steps down in May. But Elliott can block a full takeover. That presents an integration headache for successor Aiman Ezzat.

Xerox’s HP bid walks, quacks like Carl Icahn

22 January 2020

The printer maker may try to oust most of HP’s directors to win support for its $33 bln merger proposal. HP’s intransigence isn’t constructive, but its board is stronger. A proxy fight could leave Xerox activist Icahn in control, with only a small share of the company.

Climate push matters to BlackRock’s earnings, too

15 January 2020

Investors want sustainability built into portfolios so Larry Fink, CEO of the $7.4 trln asset manager, sees an opportunity. That makes efforts to prod the corporate world more sustainable, and adds market-wide pressure to one-off campaigns by firms like Jeff Ubben’s ValueAct.

Capgemini blinks first in Elliott face-off

14 January 2020

The French IT services group has raised its offer to buy $4 bln Altran despite previously insisting it wouldn’t. CEO Paul Hermelin is hoping that swallowing his pride will get him what he wants. But a modest $140 million bump up is unlikely to placate the holdout U.S. activist.

Elliott doubles down on Capgemini game of chicken

8 January 2020

The U.S. activist will not tender its 14% stake in Altran, which the French consultancy wants to buy for $4 bln. Buoyant markets should limit Elliott’s downside if the deal fails. And if Capgemini secures a majority, a legal trial may yet give investors a shot at a higher price.

Guest view: How to cut the ESG disclosure overload

7 January 2020

The data Fortune 500 companies provide on environmental, social and governance risks can be overwhelming, hard to compare and lacking much financial use. Geoffrey Heal and Shiva Rajgopal of the Columbia Business School lay out a plan to clean up the informational morass.

Xerox colors in its avant-garde HP outline

6 January 2020

The copier group now has bank commitments for $24 bln of debt for its Carl Icahn-backed $33 bln bid to buy larger rival HP. That removes one big question about a proposed deal that still seems the wrong way around. It puts pressure on HP to talk, or come up with something better.

Viewsroom: Jack Dorsey’s heroic year ahead

19 December 2019

From banning political ads to developing cryptocurrency plans, the CEO of Twitter and Square has been politically more astute than rivals like Facebook. That sets him up for a good 2020. Also: the different ways that shareholders, the Fed and M&A bankers will tackle climate risk.

Doctors’ office M&A machine may not be curable

11 December 2019

Activist Starboard is rattling the cage at Mednax. The $2 bln U.S. physician rollup is unravelling, with stalled revenue and rising staff costs. Yet private equity’s experience with rivals like Envision is not great, either. Milking people businesses for cash just may not work.

Colony Capital is easy target even minus politics

26 November 2019

Activist investor Blackwells Capital wants Tom Barrack, the real-estate veteran and backer of Donald Trump, ousted as the asset manager’s CEO. Barrack has probably been distracted. But lousy returns on Colony’s stock and poor governance are enough to justify a shareholder revolt.

Capgemini’s clock is ticking in Elliott standoff

15 November 2019

The French IT group’s $4 bln deal for Altran is being held up by the activist fund and separate legal action. CEO Paul Hermelin is due to pass the torch to his successor next year. Sweetening the offer to ensure 50.1% of Altran shareholders tender would be a nice parting gift.

Carl Icahn prints money on both sides of HP-Xerox

14 November 2019

The activist was already influential at Xerox, which last week offered over $30 bln to buy HP. Now he’s an investor at its far larger rival, more logically a buyer than a target. Icahn needs an exit from Xerox, and forcing a deal – almost any deal – with HP is one of few options.

Australia compounds resource industry climate woes

8 November 2019

Prime Minister Scott Morrison wants to crack down on environmental protesters. Companies, he argues, should listen to "quiet shareholders" instead. That's bad advice for outfits like BHP and for his government: both deserve to face more pressure on low-carbon options, not less.

Elliott nabs easy win by playing pass the pump

31 October 2019

Paul Singer’s activist shop notched another easy win by coaxing $44 bln oil group Marathon to oust its CEO and spin off its Speedway gas stations. The latter bought Hess’s retail arm in 2014 – after Elliott pushed the firm to slim down. Double dipping makes winning a lot easier.

Emerson settlement with Shaw would be win for both

30 October 2019

The clock is ticking for the hedge fund to start a proxy battle at the $44 bln conglomerate. Emerson needs a makeover, and D.E. Shaw wants to burnish its activist cred. A deal that shakes up the board and slashes fat without an immediate bust-up would be a victory for everyone.

Super Mario turbo-charges case for Sony breakup

29 October 2019

Shares of $45 bln Nintendo have gained 30% this year, partly thanks to a mobile hit featuring its iconic plumber. A richer valuation should also be an inspiration to sprawling rival Sony. Separating its video-games and entertainment business could be one way to narrow the gap.

AT&T’s brush with activism creates four winners

28 October 2019

The $270 bln U.S. telecom plans to raise margins, add directors and sell assets, and it only took a nudge from Elliott. Both sides look smart, and investors gain too. So do shareholders in other companies: AT&T’s plan to split chair and CEO roles helps them to ask for the same.

Cable cowboy joins Swiss circular firing squad

22 October 2019

John Malone’s sale of his Alpine cable outfit UPC is off after an investor revolt at its suitor, Sunrise. The erstwhile buyer has to swallow a 50 mln euro exit charge and misses the chance to challenge peer Swisscom. The Liberty Global boss’s M&A halo gets a bit of a dent.