Shareholder Activism

Uneasy lies the head of Crown Castle

28 Nov 2023

Pushy investor Elliott is again chiding the $47 bln wireless towers operator, urging it to replace CEO Jay Brown. The shares have dragged under his watch, with costly fiber networks partly to blame. As NRG and Citrix sensed, it’s unwise to slam the door twice on the hedge fund.

Two Disney activists aren’t better than one

15 Nov 2023

Mason Morfit’s ValueAct has taken a stake in the $168 bln Magic Kingdom, where it can take its own pushy path or work with fellow cage-rattler Nelson Peltz to shake things up. Dueling campaigns would make boss Bob Iger’s job easier. Tag-teaming doesn’t guarantee success.

Endeavor’s envy could become contagious

7 Nov 2023

The $12 bln talent agency and WWE owner led by Hollywood mogul Ari Emanuel is eyeing options after billionaire François-Henri Pinault paid a rich price for peer CAA. Silver Lake, with 71% of the vote, wants to take it private. A stingy bid risks making minority investors jealous.

Vans owner VF is due a wardrobe refresh

6 Nov 2023

The $6 bln apparel empire’s debt soared as shares sank 40% under its ex-CEO, whose costly deal for Supreme ran counter to its modus operandi. New boss Bracken Darrell’s cost-cutting plan has promise. Selling the streetwear brand and investing in known hits is the best next step.

Telecom Italia rival plan has too many pitfalls

3 Nov 2023

An ex-executive and a fund say the telco could raise 16 bln euros by offloading a Brazilian unit and other assets to slash its debt pile. That would spare it from selling its prized network to KKR. Yet bagging such valuations while executing a multi-step project looks tricky.

Sanofi sickness calls for activist tonic

2 Nov 2023

The pharma group lost nearly $27 bln of market value as it announced more investment in drugs. To keep investors happy, CEO Paul Hudson can sell its consumer business, step up dealmaking and buy back shares. Its long-suffering shareholder L’Oréal has reason to back bold action.

Music fund’s flat deal calls for major key change

25 Oct 2023

Shareholders are pushing Hipgnosis, run by industry veteran Merck Mercuriadis, to overhaul its board and cancel a $440 mln asset sale involving Blackstone. Poor governance and a discount value add weight to their case. A new management team could do better by selling the company.

Disney has a weak hand in activist rematch

9 Oct 2023

The $152 bln media giant promised cost cuts to sate cage-rattler Nelson Peltz earlier this year. But that is slow-going and the stock has since fallen by a quarter while peers are up. Now the activist is back and wants a board seat. A weakened Disney’s best bet: invite him in.

Capital Calls: Deliveroo

14 Sep 2023

Concise views on global finance: The UK food delivery company’s shares rose 5% amid hopes of a potential deal, but a rich takeout looks unlikely.

Capital Calls: Selling Salesforce

15 Aug 2023

Concise views on global finance: After successfully agitating for change at the $200 bln software developer, Jeff Smith’s Starboard and Dan Loeb’s Third Point are offloading their stakes. It’s probably a good time to pocket gains considering the challenges ahead for Big Tech.

South Korea’s rematch with Elliott is a lose-lose

3 Aug 2023

Seoul is challenging a $100 mln arbitration award to Paul Singer’s feisty hedge fund over a Samsung merger in 2015. Accepting defeat will invite more claims against the government but the appeal prolongs an embarrassing national saga. Korea Inc will pay the price.

Austrian bank short attack is watchdog’s nightmare

30 Jun 2023

BAWAG shares fell 8% after hedge fund Petrus said the lender had a shoddy business model and poor governance. Sector-beating returns make it a tough target. But following this year’s bank runs, regulators will fret that such campaigns could become a self-fulfilling prophecy.

Elliott asks too much too soon at NRG

23 Jun 2023

The activist wants the CEO of the $8 bln utility to go, in its second campaign against the company. Both sides see the need for cost cuts, returning capital and refreshing the board. Elliott’s worries about acquisitions are reasonable too. But it’s not yet time for heads to roll.

Toyota shareholders make 15% the new win-win

16 Jun 2023

That’s how few voted against re-electing Chair Akio Toyoda to the board over concerns about independence. He can claim victory but the biggest dip in years of his approval rating is awkward. It puts pressure on the $270 bln carmaker to keep its US shareholders onside.

Brenntag has simple fix for activist feud

14 Jun 2023

The $12 bln German chemicals group is facing a board battle with funds that want it to improve humdrum performance via a breakup. Separating its two units probably makes sense if they can’t both run smoothly. Setting a medium-term deadline to decide would ease the strife.

Capital Calls: GAM

8 Jun 2023

Concise views on global finance: An investor group led by telecoms billionaire Xavier Niel is attempting a tricky boardroom coup at the ailing fund manager.

Capital Calls: US debt deal

30 May 2023

Concise views on global finance: The pending deal for raising the debt ceiling would shift $20 billion out of the government’s tax collector. The move eases some short-term budget pressures, but could surrender a seven-fold payoff down the road.

Illumina shareholders vote for lose-lose outcome

25 May 2023

Carl Icahn scored a seat on the $30 bln biotech’s board, but fell short of the three he sought. Boss Francis deSouza won re-election but must now deal with the activist’s lieutenant. And newer investors hoping Illumina was in for a big shake-up will be disappointed. No one wins.

Telco tycoons’ UK bets look stuck underwater

25 May 2023

Patrick Drahi, Xavier Niel, John Malone and Abu Dhabi’s e& have lost $2.4 bln on about $13 bln worth of investments in BT and Vodafone, Breakingviews estimates. It’s hard to see either firm recovering soon, leaving their big-money backers potentially stuck in the quicksand.

Activist Yelp review is worth hearing out

23 May 2023

TCS Capital wants the local listings site to explore a sale, pitching a tie-up with Barry Diller’s home-services rival Angi. A targeted $70-per-share price – double Yelp’s current valuation – seems absurdly high. But potential cost savings make the combo an intriguing blueprint.