Shareholder Activism

Premier Foods CEO heave looks like M&A appetiser

10 July 2018

Activist Oasis has upped its stake in the maker of OXO cubes to oust boss Gavin Darby. Its plan to sell Batchelors soup could cut borrowing and loosen top investor Nissin’s grip, making the rest a takeover target. It’s a more appealing prospect than low growth and high debt.

UK shareholder battle upsets activist conventions

9 July 2018

Unhappy investors typically push for CEOs to step down. At infrastructure firm Stobart, fund manager Neil Woodford tried to get the chairman sacked. Iain Ferguson narrowly survived with help from rival Invesco. But the brawl puts little faith in investors guiding quiet change.

Dan Loeb hits limits of “constructivism” on Nestlé

2 July 2018

A year after disclosing a stake, the activist investor called on the Swiss giant to shake up its business and board. Though his ideas make sense, progress has been slow and the stock has lagged. He could take a more muscular approach, but only if other shareholders go along.

Premier Foods’ Japanese flavour has turned stale

28 June 2018

Top shareholder Nissin’s stake in the Mr Kipling maker has fared poorly, but a beneficial commercial deal ensures its support. With activist Oasis pushing for CEO Gavin Darby’s ouster, it’s time for the Tokyo-based company to start thinking like an investor.

Activism and stubbornness collide at SandRidge

18 June 2018

Carl Icahn’s fight with the $550 million oil driller will dominate its annual meeting this week. Neither has a straightforward plan for ending shareholders’ misery. Meanwhile a takeover by rival Midstates could slip away. The priority should be to get that deal off the ground.

Renault M&A race sidelines governance niceties

15 June 2018

Investors backed CEO Carlos Ghosn’s pay despite the French state’s opposition. His 7.4 million euro package was greased with soft targets. Yet the high proportion of shares at least gives Ghosn an extra incentive to push for a value-boosting merger with Japan’s Nissan.

Elliott didn’t get into activism to make friends

11 June 2018

Paul Singer’s hedge fund wants board seats at $31 bln utility Sempra, and has accused it of over-expanding. Presumably that includes the Oncor deal Elliott itself backed last year. Singer is arguably helping Sempra again, though the target’s board may not feel that way.

Athenahealth moves from trauma to cure

6 June 2018

The underperforming healthcare-software firm has removed CEO Jonathan Bush shortly after he admitted hitting his ex-wife. The company is looking for a replacement, but a stalking-horse bid from activist Elliott Management could lead to a sale. Either could address what ails it.

Facebook’s top two get a muddled message

5 June 2018

Most independent shareholders elected to nix the social network’s super voting rights. Yet they voiced approval for Mark Zuckerberg and Sheryl Sandberg. The strong showing for the boss and COO undercuts the argument to scrap the structure that keeps them entrenched.

Shareholder climate activism needs more heat

5 June 2018

Owners of companies from Exxon to Rite Aid are asking for more disclosure on sustainability. That’s important, but insufficient. Ensuring bosses take climate goals seriously requires an informed board – and exec pay tied to green goals. These are what investors should target.

Tesla shareholders box themselves into corner

5 June 2018

They ought to strip CEO Elon Musk of the chairmanship thanks to his sprawling responsibilities, production problems and recent outbursts. But investors helped make Tesla a personality-cult stock. Any direct attack on Musk risks undermining the electric-car maker’s fortunes.

CEO exit takes Samsonite rebuttal only so far

1 June 2018

The $5 bln luggage-maker parted ways with its boss after a short-seller revealed he didn’t hold a doctorate despite sometimes being called “Dr”. Samsonite’s efforts to knock down other accounting and governance allegations could take longer after it lost the benefit of the doubt.

Toshiba has reasons to cling to its cash pile

1 June 2018

The scandal-hit Japanese group is poised to finally sell out of memory chips. Having also raised money from hedge funds, Toshiba will have $10 bln of net cash. Yet hurdles to distributing dividends and big transformation plans make large payouts to investors a distant prospect.

Greyhound owner’s turnaround faces lengthy delay

31 May 2018

Bus and rail operator FirstGroup’s CEO resigned and its shares fell after it reported a loss, due to competition from low-cost airlines. It can cut costs and sell assets, but tough markets and management upheaval don’t help. A sale looks easier, but may not deliver a good price.

China script flipped at hedge fund idea-fest

31 May 2018

A relaxing approach to the country’s debt and infrastructure projects was reflected at Sohn Hong Kong, where Guangzhou’s airport and mainland stocks broadly were touted as buying opportunities. Scepticism about tech titans Tencent and JD suggests another shift could be underway.

Exxon shareholders dutifully take back seat

30 May 2018

One year after rebuking management over climate change, owners of the $330 bln oil giant turned quiescent. They toed the company line on pay, lobbying and splitting the chairman and CEO roles. If returns remain subpar, investors will have no one but themselves to blame.

Bad-boss risk rises for activist and target alike

29 May 2018

An investor who took aim at a REIT chief accused of sexual misconduct is now fighting claims against himself. Such allegations are harder to contain for companies, which usually face more scrutiny than hedge funds. The asymmetry has limits though, especially if fund returns fall.

Shell investors take a narrow view of climate risk

22 May 2018

The oil major easily fought off an attempt by shareholders to turn carbon-reduction ambitions into hard targets. That prevents it being hamstrung compared with rivals. But even the relatively enlightened Shell assumes oil demand forecasts that are vulnerable to political shifts.

Blackstone relives Hilton on a boutique scale

21 May 2018

The buyout firm offered $3.7 bln for hotel operator LaSalle, wading into a bidding war just after it sold its remaining stake in Hilton. That earlier deal took more than a decade to close out. With riskier properties and a higher valuation, this new foray will be tougher.

Hyundai U-turn puts Asia investors in higher gear

21 May 2018

The South Korean conglomerate slammed the brakes on a $9 bln restructuring after investors revolted. It's a big step in a region where shareholders are often given short shrift. Alongside other recent upsets, Hyundai's is welcome evidence the balance of power is shifting.