Shareholder Activism

DowDuPont activist legacy spawns new activism

21 January 2021

Starboard Value wants new directors and a new CEO at $33 bln Corteva. The seed and pesticide group is one of three born from the 2017 merger and later breakup of Dow and DuPont. That grand plan looked good on paper to other noisy investors, but making it work is proving hard.

Activist scratches at surface of Danone malaise

19 January 2021

Bluebell wants the yoghurt maker to split the role of chair and CEO and for boss Emmanuel Faber to quit. His underperformance relative to peers means that Danone should at least do the former. But boosting sales growth will require more than a corporate governance revamp.

Intel CEO switch brings $25 billion of hope

13 January 2021

VMware boss Pat Gelsinger will replace Bob Swan at the chipmaker, adding 12% to the stock price. It could help Intel regain its technology focus and open the way to changes proposed by activist Dan Loeb. Gelsinger now has the weight of those expectations on his shoulders.

New World sets better template for climate bonds

13 January 2021

The Hong-Kong-based developer has sold sustainability-linked 10-year paper that carries a penalty for missing green goals. In a twist, its forfeit doesn’t go to investors via higher interest payouts but into carbon offsets. That’s better for the planet and the bonds’ credibility.

Corona Capital: Icahn, Productivity, Natixis

4 January 2021

Concise views on the pandemic’s corporate and financial fallout: Carl Icahn sells half his Herbalife Nutrition stake; an ECB survey suggests Covid-19 will make big firms more productive, but that may not be all good news; and Natixis fast-tracks its overhaul.

Loeb injects paranoia into Intel a bit too late

30 December 2020

Activist investment fund Third Point correctly diagnoses the $200 bln chipmaker's main woe as a loss of its manufacturing edge. Separating chip design and production would help both, perhaps with a little boost from Uncle Sam. Regaining a lost tech lead, however, is hard.

BlackRock stretch goal: real shareholder democracy

29 December 2020

The $8 trln asset manager votes on behalf of millions of small investors. Rather than telling companies how to handle gun safety or climate change, BlackRock might do better to pass the decision to the ultimate owners. That calls for investment in new technology, and new habits.

Viewsroom: Predictions and prescriptions (Part 1)

23 December 2020

Governments will become activist investors; U.S. airlines will merge; data centres will be the new ESG target; energy giants to consider renewable spinoffs; Tesla will buy Daimler; European soccer gets more American and more. Rob Cox, Peter Thal Larsen and Lauren Silva weigh in.

Corona Capital: Private jet deal

17 December 2020

Concise views on the pandemic’s corporate and financial fallout: Blackstone bets that plutocrats will be back in the air before the rest of us.

Drahi’s hedge fund spat ends in acceptable defeat

16 December 2020

The telecoms mogul raised his lowball offer to buy out shareholders in his group Altice to 6.4 bln euros. That has won support from activists including Elliott, avoiding a legal tussle. Still, a final valuation below some peers suggests the gambit has partially succeeded.

LG missteps into chaebol-challenge spotlight

16 December 2020

A pushy investor is unhappy with a spinoff plan by the South Korean empire’s $12 bln holding company. The carve-up’s financial benefits are hard to identify. That brings unwanted attention to a pioneer in corporate restructuring just as the country angles for stricter measures.

Elliott can clean house in Public Storage

14 December 2020

Paul Singer’s fund wants the U.S.’s largest self-storage provider to junk its ultra-cautious debt strategy, plow cash into the business, and shape up governance. It’s an activist trifecta. But changes are needed to keep pace with the industry. Elliott has found easy pickings.

Activist minnow needs bigger fish to fry Exxon

7 December 2020

The $176 bln oil major has rarely listened to past investor pleas, so demands from a $40 mln stakeholder seems a non-starter. Yet its recent record of capital destruction may be enough for bigger funds to join in. Taking on the oil giant is a way to justify ESG lip service, too.

SoftBank derivatives U-turn fuels governance hopes

2 December 2020

CEO Masayoshi Son will ditch an unpopular options strategy, Bloomberg reported, only months after launching it. That’ll please investors who want the Japanese group to focus on asset sales and share buybacks. Their next target should be his $17 bln portfolio of technology stocks.

Elliott’s Swiss cookie raid merits activist slap

24 November 2020

Paul Singer’s fund made a 733 mln euro bid for debt-laden baker Aryzta. It comes as the Otis Spunkmeyer maker’s soggy valuation may gain from a plan backed by other investors to break it up. The easing pandemic gives shareholders reason to hold out for more.

Corona Capital: Vaccine storage

16 November 2020

Concise views on the pandemic’s corporate and financial fallout: Warehouse centers get another boost with Moderna’s vaccine prospects.

Elliott takes power punch to greener pastures

12 November 2020

Paul Singer’s fund wants utility Evergy to engage with NextEra, the largest U.S. renewable energy firm. Regulators have frowned upon NextEra’s ambitions. But its valuation helps justify deals without tasking ratepayers. Elliott’s presence might help Evergy get over deal-phobia.

Activists shove Unibail towards chastening Plan B

10 November 2020

French mogul Xavier Niel blocked the mall owner’s planned $4 bln rights issue. That’s embarrassing enough for Unibail boss Christophe Cuvillier. But the only realistic way to fix the balance sheet holes from the Westfield acquisition he masterminded is to sell valued U.S. assets.

SoftBank $97 bln cash pot is activist battleground

9 November 2020

That’s how much firepower CEO Masayoshi Son reckons his company will have after selling assets. He favours investing in artificial intelligence while pushy investor Elliott might prefer buybacks. Given the $130 bln company’s persistent discount, the latter makes far more sense.

UK manager for the rich makes worthy activist prey

27 October 2020

PrimeStone Capital has called for an overhaul at high-end wealth group St James’s Place, citing low returns. The investor’s small stake means CEO Andrew Croft may dismiss the salvo. But bringing costs more in line with rivals could give his $7 bln firm’s grubby valuation a boost.