Shareholder Activism

JD’s governance upgrade starts in Hong Kong

23 June 2021

The $112 bln e-tailer is adopting investor-friendly measures like holding annual meetings and allowing the board to convene without boss Richard Liu. JD now has a female director, too. The city’s listing rules are driving some changes, and more can be done. But it’s a start.

Capital Calls: GameStop is a SPAC now

22 June 2021

Concise views on global finance: The meme-stock video-game retailer has raised more cash, making it look like an overvalued cash shell.

Bolloré and Ackman will beat the Vivendi activists

15 June 2021

Agitators including Dan Loeb own stakes in the French tycoon’s conglomerate. A messy plan to list most of music label Universal, while selling 10% on the cheap to Bill Ackman’s SPAC, gives them plenty to aim at. But Vincent Bolloré’s near-30% control means he has the upper hand.

Capital Calls: Corporate America blowback

15 June 2021

Concise views on global finance: An investor lawsuit against Trump-era rules on shareholders' proposals is the latest sign of the tables turning.

Fashion moves to the centre of activist crosshairs

14 June 2021

Covid-19 has exacerbated the $2.5 trln industry’s ESG-unfriendly flogging of cheap clothes. Recycling is no more than a partial fix for the problem. Inditex and H&M are insulated by their big family holdings, but Boohoo, Adidas and ASOS look vulnerable to investor attacks.

Toshiba mess will be useful national embarrassment

10 June 2021

An independent probe found the $20 bln Japanese conglomerate sought to subvert shareholders in conjunction with the government. The findings intensify pressure for a sale, bolster the broad case for activist investors and should kick Japan’s governance changes into higher gear.

Aviva activist is part outrider, part salesperson

8 June 2021

Cevian Capital has taken a 5% stake in the 16 bln pound UK insurer. Unusually for an activist, it likes boss Amanda Blanc’s current strategy. But it gives her cover to move quickly, and also sets Aviva on a similar path to the lucrative exit Cevian managed at fellow insurer RSA.

Pharma CVRs are an unhealthy M&A habit

4 June 2021

A lawsuit claims Bristol Myers slow-walked a cancer drug approval to avoid a $6.4 bln top-up payment on its buyout of Celgene. Aggrieved investors may get something but should have known better. Contingent value rights are illiquid, dispute-prone and best given a wide berth.

GSK’s radical surgery is only a partial fix

3 June 2021

GlaxoSmithKline CEO Emma Walmsley is breaking up the $96 bln drugmaker. Spinning off the consumer unit may unlock value and give what’s left firepower for deals and drugs. Yet the split carries risks and will still leave the embattled pharma group facing a lengthy turnaround.

Viewsroom: Big Oil’s global blow

27 May 2021

A small activist fund upended Exxon Mobil’s board while Shell was dealt a setback in a Dutch courtroom. At the same time, Chevron shareholders backed a proposal to cut more emissions. The interests of both stakeholders and shareholders are rapidly aligning in fossil fuels.

Oil giants’ setbacks turn BP from tortoise to hare

27 May 2021

Investors were initially sceptical about the UK major cutting fossil fuels, preferring the fuzzier plans of its U.S. and European rivals. Shell’s legal defeat and an investor revolt at Exxon Mobil change the game. Clarity on cutting emissions will increasingly support valuations.

Activist win at Exxon may change corporate America

26 May 2021

Dissident owners replaced at least two of the oil giant’s 12 directors, a huge feat. CEO Darren Woods and others are now on notice. A radical shift toward green energy is not easy. For Exxon, it may mean broader change, perhaps even an end to its century-old stock-market listing.

FirstGroup rebels may rue waiting for the next bus

25 May 2021

Two shareholders of the UK transport operator may vote against a $4.6 bln sale of its U.S. businesses to EQT. While no knockout, the price looks fair given the lack of other certain offers. A delay could destabilise the company when it needs to focus on opportunities at home.

Exxon’s necessary transition starts with the board

25 May 2021

Investors are being asked to vote on a welter of measures to fix the oil giant. Dissident shareholders and proxy advisory services disagree on what and how much needs to be done. Having more independent board voices with experience in energy firms undergoing big shifts is key.

GSK CEO’s best defence is a graceful exit

5 May 2021

The $93 bln drug company is under pressure after activist Elliott took a stake. Boss Emma Walmsley is splitting the group into two, but its struggling pharma unit faces a lengthy turnaround, and may benefit from a new leader. Walmsley could run the new consumer business instead.

Capital Calls: Pfizer, ConocoPhillips

4 May 2021

Concise views on global finance: About $6 bln of additional earnings from Covid vaccines at the U.S. drug giant should mean more capital returned to investors; the independent oil group is offloading stock in Canada-based Cenovus it collected as part of a deal four years ago.

New Zealand blends specially bright shade of green

21 April 2021

The United States and China are vowing to work together on decarbonisation. JPMorgan and Citi raised their sustainable-finance goals. Investors are pushing harder, too. A Kiwi plan to force banks and money managers to come clean about climate risks neatly ties it all together.

Toshiba CEO exit gives better governance a chance

14 April 2021

Nobuaki Kurumatani already was losing support from investors and staff. His ties to buyout bidder CVC may have cost him backing from directors too. The board can help make up for a series of missteps by running a robust sale process that secures a good deal for shareholders.

Box KKR deal kills two birds with three stones

8 April 2021

Activist Starboard Value wanted a sale of the $4 bln cloud-services group and board changes. Now KKR will invest $500 mln in convertible preferred stock, which Box will use to repurchase regular shares. Governance improvements are a plus, but it's a complicated way to buy time.

Right-wing activists pose challenge to ESG crusade

25 March 2021

The SEC may make it easier for investors to demand ballots on topics like climate change and racial justice. That could also let through conservative proposals firms like Intel and Verizon previously swatted away. Companies may just need to get used to the spirit of open debate.