Shareholder Activism

Capital Calls: Activist investors, P&G, Rivian

19 Jan 2022

Concise views on global finance: Underperforming UK stocks lure cage-rattling shareholders to London; sickness and germaphobia boost the $380 bln company’s earnings: And Ford Motors and Amazon.com book big gains on investments in the electric carmaker as its stock tumbles.

Capital Calls: Dan Loeb’s gadfly circles again

18 Jan 2022

Concise views on global finance: The U.S. activist’s activists up the ante with call for independent director.

Unilever can still avoid Danone’s fate

14 Jan 2022

The $137 bln Dove maker’s stock has lagged rivals, activist Nelson Peltz may be circling, and other investors are grumbling. The recent ouster of the French yoghurt maker’s boss is a warning. CEO Alan Jope could pre-empt any revolt with clearer targets to sell struggling brands.

Cerberus hellish German bank bet reaches early end

11 Jan 2022

The U.S. investor sold nearly half of its Deutsche Bank and Commerzbank stakes at a 20% loss. Its investment suffered from bad timing, and the difficulty of forcing change with a small holding. Fund constraints mean the group is now selling in the middle of the banks’ recovery.

Turkish mobile spat exposes state fund weakness

10 Jan 2022

Billionaire Mikhail Fridman wants to overhaul Turkcell’s board to boost the $3 bln group’s valuation. Turkey’s state wealth fund, which appoints most of the directors, looks an obstacle. With stakes in other ailing companies like Turkish Airlines, it’s proving a poor custodian.

Nelson Peltz needs to choose his asset manager

7 Jan 2022

The activist's Trian wants board representation at Janus Henderson, backed by its 17% stake. But Trian also owns 10% of Janus competitor and potential merger partner Invesco. If it came to a deal between the two, Peltz would look conflicted and that could discredit his arguments.

Dissent endures for Hong Kong shareholders

6 Jan 2022

The buyer of camera components maker Yorkey Optical lifted its offer by 14% after pushback from activist investor David Webb while minority owners thwarted tycoon Joseph Lau’s attempt to take his Chinese Estates private. Small financial victories carry greater meaning these days.

Elliott picks low-hanging fruit with builder punt

15 Dec 2021

After a bruising battle at utility SSE, the activist is targeting British housebuilder Taylor Wimpey. Its demands are modest and its criticisms a little overdone. Still, the $8 bln company’s lacklustre shares mean other investors should back Elliott’s call for an external CEO.

Centene CEO defenestration will create value

14 Dec 2021

Activists got the stick they needed to force out Michael Neidorff after the $47 billion managed-care firm took a provision of more than $1 billion to settle claims that it overcharged Medicaid. Their next order of business is to replicate rival Molina’s margin success.

Exxon and activists have one point in common

9 Dec 2021

Some of the fossil fuel giant’s investors think the new board isn’t making enough progress on carbon targets and want boss Darren Woods to go. With oil prices above $70, the board can resist most of their demands. But both sides have an interest in keeping investment in check.

Capital Calls: Zoom, U.S. jobs

3 Dec 2021

Concise views on global finance: The video-conferencing service is investing in Amex Global Business Travel as part of a $5.3 bln SPAC deal; in the United States, only 210,000 positions were added in November, but the unemployment rate fell.

Capital Calls: Dan Loeb, Daily Mail

2 Dec 2021

Concise views on global finance: The billionaire activist swats away his own gadfly investor; the UK tabloid’s controlling Rothermere family sweetens its take-private offer, to the presumable delight of the campaigners on its news desk.

Glencore’s activist is misguided but not unhelpful

30 Nov 2021

Bluebell is pushing the $63 bln miner-trader to spin off coal. Thungela’s plans to dig up more of the mineral after its Anglo spinoff weaken the argument, and prices are at record highs. Still, if it makes Glencore quit coal quicker than its 2050 target, it’s a job well done.

Capital Calls: Risky banks, UK SPAC, AO World

23 Nov 2021

Concise views on global finance: A global watchdog reckons JPMorgan is once again the world’s most systemically important lender; investment firm Hambro Perks launches a UK blank-cheque vehicle; the British online retailer issues its second profit warning in two months.

Capital Calls: Eni spinoff

22 Nov 2021

Concise views on global finance: The $50 bln Italian oil group has a new name for the renewable energy and retail arm it plans to partially list.

Icahn’s Southwest Gas mixtape has all the hits

19 Nov 2021

The activist is blasting overspending, making a hostile tender offer, criticizing a major deal and pushing for a breakup in his campaign at the $4 bln U.S. utility. They are classic Icahn tactics. But history suggests investors might do best if he gets only some of what he wants.

Elliott seeks hidden tech treasure in dull grocer

17 Nov 2021

Paul Singer’s fund took a 3% stake in $35 bln retailer Ahold Delhaize. Rather than cost cuts, the activist’s interest lies in the Dutch group’s online unit, worth perhaps $8 bln. But competition is fierce and rich valuations may not last. Elliott’s bet also needs good timing.

Capital Calls: Stadium naming, Diageo, Evolution

17 Nov 2021

Concise views on global finance: Crypto.com is paying heavily to rename Staples Center; The drinks maker plans to grow its market share by 50% in the next decade; the $36 bln Swedish gambling firm lost $2 billion of its market capitalisation after accusations of illegal gambling.

Richemont beats orderly retreat from digital fight

12 Nov 2021

Under pressure from activists, the Cartier owner plans to spin off its loss-making online arm to rival Farfetch and others. If valued in line with peer Zalando it would be worth a respectable 4.7 bln euros. A sale should help Richemont close the valuation gap with luxury rivals.

Toshiba split edges it slowly down the right path

12 Nov 2021

The $19 bln conglomerate plans to break into three, days after fellow former titan GE did the same. For Japan Inc, it’s revolutionary. More focused units should attract better managers and valuations. But the two-year timetable seems designed to discourage more vocal investors.