Shareholder Activism

BP vote pours gas on Exxon’s climate fire

21 May 2019

Owners of at least a quarter of the U.S. oil major’s shares backed the overwhelming vote for more emissions pledges from its UK rival. BP’s support helped, but the result also shows the growing power of climate activists. Exxon’s decision to fight them now looks even more risky.

BP investors take the slow road to climate action

21 May 2019

Shareholders endorsed greater disclosure of the oil major’s compatibility with Paris climate goals, but rejected binding targets. It’s a start, but hardly matches the scale of the problem. Both BP and its owners appear unsurprisingly happy to wait for greater political urgency.

Greyhound breakup is worth the trip

20 May 2019

Activist Coast Capital wants the U.S. coach chain’s parent FirstGroup to spin off its loss-making UK parts and stop bidding for rail franchises. Pension liabilities and valuation debates complicate matters. But even on a pessimistic view, investors could double their money.

Cerberus’s German bank punt looks stuck in Hades

16 May 2019

The U.S. buyout group has seen the value of its stakes in Deutsche Bank and Commerzbank fall by around half and one-third respectively since 2017. Cerberus now needs revenue to rise and costs to drop at both lenders just to break even by 2022. That’s not a foregone conclusion.

Legg Mason checks all boxes for activist interest

15 May 2019

Nelson Peltz is eyeing the underperforming manager of $758 bln of assets. As a mid-sized purveyor of mostly actively managed funds, Legg Mason sits in the industry’s biggest danger zone. High costs offer some low-hanging fruit, but a sustainable turnaround is a tougher challenge.

Toshiba invites foreigners to strut their stuff

14 May 2019

The embattled $18 bln conglomerate nominated four non-Japanese directors to a more independent board. It’s a bold step in a country slowly rethinking corporate governance. Given previous failed experiments with outsiders, Toshiba’s experience will be a litmus test.

Nissan could easily tempt a bold activist

13 May 2019

The $31 bln carmaker is resisting deal talks with Renault. An arm’s-length arrangement favoured by boss Hiroto Saikawa will only weigh on Nissan’s value. Pushy investors have been chipping away at corporate Japan. One able to handle the politics could help make the case for M&A.

UK subprime M&A scrap risks bloody outcome

10 May 2019

Non-Standard Finance’s $1.4 bln takeover of peer Provident is meeting resistance from the target’s shareholders, amid competition and capital concerns. The acquirer could face a lengthy delay, or get stuck with pesky holdouts. Finance is a tricky arena for hostile dealmaking.

Exxon becomes test of investors’ carbon capture

6 May 2019

New York State and the Church of England want to split the chair and CEO roles and oust the board after the $328 bln U.S. oil giant squashed their emissions-reduction push. They have won peers over in other climate fights, but taking on Exxon’s top brass may be too much for many.

Buffett makes dubious art of anti-virtue signaling

6 May 2019

Berkshire Hathaway’s annual meeting eschewed lofty talk of global warming or social purpose often heard from other investors. A $10 bln investment in shale underlines Warren Buffett’s priorities. But it’s a missed opportunity to leave a legacy beyond above-market returns.

Viewsroom: Apple versus Alphabet

2 May 2019

Both Silicon Valley giants are looking for the next big thing after a slowdown in their main product – iPhone sales at Apple and online ads at Alphabet. Lower expectations mean Tim Cook’s outfit has more time to act. Plus: Activist Dan Loeb puts Sony back under the microscope.

Barclays activist gets upside for everyone but him

2 May 2019

Investor Edward Bramson has lost his bid to gain a Barclays board seat, by a wide margin. The win bolsters CEO Jes Staley’s investment banking strategy. Still, activist agitation has improved returns, even if Bramson’s investment remains underwater.

Bayer can do more to defuse investor rage

1 May 2019

Shareholders cast a vote of disapproval against the German group’s management following cancer-related lawsuits linked to the acquisition of Monsanto. Yet neither side wants a new CEO or strategy. Revamping the board and boss Werner Baumann’s pay might quell the revolt.

Deutsche Bank chair faces shareholder reckoning

29 April 2019

Failed merger talks with Commerzbank are another blot on Paul Achleitner’s seven-year tenure at the German lender. A vote against Bayer bosses suggests investors are becoming more vocal. With his own May 23 judgment day looming, Achleitner has a tough job arguing for continuity.

European energy’s biggest M&A impasse has an exit

26 April 2019

Activist Knight Vinke has an idea to break the stalemate preventing Finnish group Fortum from taking control of 10 bln euro German utility Uniper. Splitting the latter’s business requires fellow investor Elliott and the two companies to compromise. That’s better than gridlock.

Bayer shareholder revolt rests on shame factor

25 April 2019

BlackRock and others want to punish the German chemicals group for its takeover of Monsanto, which destroyed $33 bln of value. But the likely vote of disapproval is more bad PR than a binding order. It’s a sign of the limits of shareholder activism in Germany.

Barclays bolsters devil-you-know retort to Bramson

25 April 2019

The UK bank’s traders made a 9 pct return in the first quarter. They’re still not earning their keep, but the result shows the merits of a broad investment bank. That, and a pledge to prune bonuses, may help investors resist the upheaval touted by activist Edward Bramson.

Elliott cloud-computing bet rests on dumb markets

24 April 2019

The activist group revealed a $1.4 billion stake in German software giant SAP, and backed its management. The fund’s own analysis implies the stock could double, but looks out of kilter with analysts’ forecasts. The bold call means SAP needs to move quickly to keep Elliott sweet.

Dan Loeb can help Sony handily sharpen its picture

10 April 2019

The activist’s return to the $60 bln PlayStation-maker provides a catalyst to break the company into a pure-play chips business and a more-focused entertainment group coveted by Apple, Amazon and Netflix. By exiting phones and selling insurance, it can also better compete.

Loeb’s Sony sequel has makings of a blockbuster

8 April 2019

The activist behind Third Point is building a stake in Sony and getting the Japanese group to sell its movie studio could be part of the plan, Reuters reported. The media landscape has changed since Dan Loeb last tried to break Sony up. The idea looks ready for prime time.