Shareholder Activism

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.

Capital Calls: GAM takeover saga

16 May 2023

Concise views on global finance: The stricken fund group is an unlikely target for activists led by billionaire telecoms tycoon Xavier Niel.

Capital Calls: Walt Disney

10 May 2023

Concise views on global finance: Bob Iger’s first full quarter since returning as CEO opened a window onto multiplying challenges across the Magic Kingdom.

ValueAct loses its temper in 7-Eleven

10 May 2023

Boss Mason Morfit prefers to chide undervalued conglomerates behind closed doors. But Seven & i has so provoked him, his firm is publicly calling for chief Ryuichi Isaka’s head. ValueAct has a good case, so the looming showdown will test how rude activists can get in Japan.

Buffett’s imprint on Berkshire reaches its limit

8 May 2023

The billionaire again made clear that energy lieutenant Greg Abel will someday be the company’s next CEO. By bequeathing his stock to the Bill and Melinda Gates Foundation and others, Buffett has outlined ownership succession too. Even those best-laid plans leave notable holes.

It’s time HSBC’s top owner calms down or sells up

4 May 2023

Ping An’s fight for a rejig is going nowhere, more so after the $150 bln lender’s bumper profit. Continuing risks hurting the Chinese insurer, HSBC and maybe even Hong Kong. Better to peacefully reap the benefits of boss Noel Quinn’s overhaul - and rejoin the fray if he falters.

Icahn may fall short in quest of the holy Grail

21 Apr 2023

New rules in proxy contests haven’t helped activists in Disney or Salesforce. But with a concentrated shareholder base, they may embolden Carl Icahn as he agitates at Illumina, in the process of buying cancer detector Grail. The trouble is Icahn is pushing beyond the attainable.

Cellnex could use an outsider with a sharp knife

30 Mar 2023

Hedge fund TCI has accused the Spanish tower operator of “mishandling” an ongoing CEO search. Once an M&A machine, the $27 bln firm needs to cut its debt load markedly. That requires a new boss with a fresh perspective, not an insider.

CEO nostalgia won’t bring back the alpha

29 Mar 2023

Activist Carl Icahn wants Illumina’s Jay Flatley back at the helm of the US biotech firm. He’d be joining the zeitgeist: UBS and Disney have both reinstalled former CEOs too. Competence has value, but past performance doesn’t guarantee greatness. Long tenure brings its own risks.

Xavier Niel can feast on European telco misery

27 Mar 2023

The French tycoon has assembled a privately owned telecoms empire worth about $33 bln, Breakingviews calculates. Behind the scenes he’s manoeuvring to further spread his wings. Purchases of stakes in Vodafone and Luxembourg-based Millicom signal the scale of his ambition.

Salesforce is stuck with its pricey acquisitions

20 Mar 2023

Pushy investors persuaded the business software developer to cut back on M&A, but undoing past deals would be tougher. Offloading $28 bln Slack, $16 bln Tableau or $7 bln MuleSoft looks to be more trouble than it’s worth. Integrating them is a better, albeit slower, approach.

Big Oil’s old profligacy lives on Down Under

15 Mar 2023

Chevron, Shell and others are ploughing some Ukraine-related windfall earnings into new projects, but sharing the lucre with shareholders too. Australia’s Santos is being stingier, with governance and climate concerns to boot. Its lagging stock is dry powder for activists.

Icahn reacts audaciously to Illumina’s audacity

14 Mar 2023

The mouthy billionaire wants three board seats at the $36 bln biotech company and for it to spin off Grail. Boss Francis deSouza overpaid to buy back the cancer detection business and took on too much regulatory risk. Some oversight is warranted, but a 1% stake only buys so much.

Capital Calls: Carlsberg CEO exit

7 Mar 2023

Concise views on global finance: Asia will be a key battleground for the $21 bln Danish brewer’s next boss.

Adani contrarian is a win for Hindenburg, too

3 Mar 2023

GQG’s $1.9 bln investment is a fillip for the tycoon. But shares of his firms are close to the short-seller’s target. And a court has ordered India’s securities watchdog to probe its allegations. Even if cleared, Adani may struggle to secure the backing of mainstream financiers.

Spotify’s next act: hosting ad lollapalooza

24 Feb 2023

The music service attracted activist ValueAct as founder Daniel Ek starts to whack costs. Yet rather than cutting its way to profit, Spotify could stem its losses by nabbing a quarter of the streaming and podcasting ad pie. It’s a tough but plausible performance to pull off.

Scrap-car deal battle is a heaping mess

23 Feb 2023

Ritchie Bros’ $7 bln deal for salvage-yard operator IAA has seen dueling activists, wild synergy projections, and a big hit to the buyer’s stock. The deal’s value looks slim unless optimistic promises pan out – the problem is, they include gains investors can get on their own.