Shareholder Activism

Twitter can’t please everyone but still has to try

28 May 2020

Fact-checking a President Trump tweet has put founder Jack Dorsey in a political spotlight he had previously avoided. A spring clean of tweets is good for business in the long term. But unlike peers, Dorsey needs to please shorter-term investors too, like activist fund Elliott.

Exxon climate activists can call in reinforcements

28 May 2020

Environment-linked resolutions won less backing at the $193 bln energy firm’s annual meeting on Wednesday than at rivals’. Replacing directors is the next logical step. It’s a task traditional activists are more used to – and Exxon’s poor financial record could pull them in.

Activist curve will get flattened by the pandemic

28 May 2020

Dozy boards are crying out for prodding as Covid-19 ravages businesses. But balance sheets will need to be more, not less, robust. And pushy investors can hardly point to great returns. After years of barging down doors, they should prepare to have more slammed in their faces.

Jamie Dimon returns to a changed investor climate

19 May 2020

Shareholders fired warning shots at the JPMorgan boss, recently back from surgery. An investor’s push for better information on climate risk is close to passing. The largest minority ever wants an independent chairman. Dimon’s remaining years in charge might not be easy.

Climate activists get bigger bang from smaller ask

11 May 2020

U.S. fossil-fuel firms have been more resistant to shareholders’ demands on global warming than European rivals. But a majority of Phillips 66 owners just backed a climate vote that Exxon and Chevron will soon face. The activists’ success may be down to their more targeted scope.

Bolloré offers Lagardere costly activist defence

22 April 2020

Vivendi, controlled by corporate raider Vincent Bolloré, has taken an 11% stake in the besieged French media company. That may help boss Arnaud Lagardere fend off hedge fund Amber Capital. The reward could be the chance to snap up the group’s prize publishing arm for himself.

ValueAct nudges Nintendo to ditch the joystick

22 April 2020

The U.S. investor disclosed a $1 bln stake in the maker of Super Mario. Unlike the typical activist target, Nintendo is well run and outperforms rivals. But its focus on consoles looks short-sighted. As it did with Microsoft, ValueAct can push Nintendo in the right direction.

Buffett may end up Occidental’s owner-by-accident

15 April 2020

The Sage of Omaha struck a clever deal with the shale driller by investing $10 bln through preferred shares. Now the oil price has halved, and on paper Occidental’s regular equity may be almost worthless. The true price of Buffett’s help is becoming clear.

ValueAct slides an atypically ajar shōji

14 April 2020

After a victory at Olympus, the U.S. investor is trying to push open the latticed door at $4 bln JSR. Unusually for a Japanese company, the synthetic rubber and chemicals maker has a foreign CEO and regularly pays out cash. That means it could be receptive to an outsider’s ideas.

Poison pills don’t always taste so bitter

9 April 2020

Boards sometimes use these defenses to deflect activists or unwanted bidders. Restaurant chain Dave & Buster’s may have found a less suspect use. Its pill could help it get raider KKR to buy shares directly rather than in the market – and put cash into the company in the process.

Climate fight at Mizuho previews wider clash

9 April 2020

An investor group is urging the $29 bln finance giant to reduce lending for coal. With Japan in a state of coronavirus emergency, it’s an odd time to pick this battle, nor is Mizuho in charge of national energy policy – the real problem. But activists have to start somewhere.

Icahn’s Volkswagen-Navistar deal is DOA

8 April 2020

The activist was finally set to make a fat return on the U.S. truck maker thanks to the German carmaker’s $2.9 bln offer. But the deal was never signed, and the target’s shares have halved. Given CEO Herbert Diess may have to take state aid, another Icahn bet may bite the dust.

HSBC retail investors pick odd time for a fight

6 April 2020

Thousands of Hong Kongers are rallying to act against the UK bank for halting dividends. The lender has complex ties with the Asian hub, where it makes most of its profit. The city needs more grassroots activism. But at a time of profound uncertainty, the agitation lacks class.

Starboard takes no prisoners, offers no pity

3 April 2020

A pandemic hasn’t stopped the activist fund from going hard on companies like eBay and GCP. Other notoriously difficult investors – Elliott, Icahn – are showing restraint. Covid-19 shouldn’t be a shield for badly run businesses, but cutthroat tactics are best used sparingly.

Japanese investors stick to curious old ways

30 March 2020

Despite signs of displeasure with Kirin’s strategy, shareholders rejected proposals to change it. Toshiba Machine’s approved anti-takeover measures while Teikoku Sen-i’s spurned higher payouts. There are glimmers of progress in the votes, but they are self-defeating all the same.

Crisis gives activism new drive in Lagardère spat

26 March 2020

Amber Capital is pressing ahead with its campaign to oust the French company’s supervisory board. Long-term share underperformance and messy governance provide the justification. With Covid-19 giving companies an excuse to shelve reforms, constructive criticism is still needed.

Korean Air drama risks ending in corporate tragedy

25 March 2020

Feuding siblings, white knight Delta Air Lines, and a pushy activist are all battling over the country’s top carrier. Change is overdue, but debt worth 862% of equity has left Korean Air more vulnerable than peers to a pandemic. Any victory from the proxy battle will be pyrrhic.

Corona Capital: Religious aid, Ad-spending slump

23 March 2020

Concise views on the pandemic’s corporate and financial fallout: U.S. Vice President Mike Pence wants Americans to donate to religious institutions to bolster community aid. But churches have their own fiscal problems. Plus: TV ad revenue look set for a pounding.

SoftBank’s buyback is opportunistic and frivolous

13 March 2020

The Japanese group is partly bowing to pushy hedge fund Elliott by repurchasing $5 bln of its own stock. In a plunging market, though, Masayoshi Son’s company may struggle to sell assets at decent prices to fund the move. And taking on more debt will do little to boost its value.

Oxy victory would help Icahn’s poor oil-patch rep

12 March 2020

By raising his stake in Occidental Petroleum, the activist has upped the odds of getting his way, or reaching a truce. It helps that his demands – a new CEO and a sale of the company – both make sense. A trail of rocky energy investments means Icahn could use a high-profile win.