Shareholder Activism

Sony’s activist defence is only semi-convincing

17 September 2019

The $75 bln Japanese entertainment conglomerate rejected a call from Dan Loeb’s Third Point to spin off its chips business. The long-term case for keeping it is fuzzy but this may not be the best time for separation. It’s harder to support Sony holding onto its finance unit.

Benettons’ credibility on the line in road fiasco

16 September 2019

The $20 bln infrastructure group accounting for half the wealth of one of Italy’s top dynasties is sinking deeper into a probe linked to a deadly bridge collapse. The damage risks infecting their shirts-to-motorways empire. Replacing Atlantia’s boss would be too little too late.

Viewsroom: Nissan’s car-crash CEO

11 September 2019

Hiroto Saikawa is stepping down amid controversy over his pay. It has implications for the company’s rocky Renault alliance, and by extension for the French carmaker’s recent attempt to merge with Fiat Chrysler. Plus, is activist Elliott Management going soft on AT&T?

AT&T tilt can transform Elliott as well

9 September 2019

Paul Singer’s hedge fund beat Argentina and forced out Arconic’s ex-boss, earning a reputation for ruthlessness. AT&T, its bluest of blue-chip targets yet, is a new frontier. Getting the telecom giant to cooperate could make Elliott part of the high-finance establishment.

Elliott brandishes velvet-clad fist at AT&T

9 September 2019

The activist fund’s demands for the $270 bln U.S. telco are mild: Be leaner, stop doing deals, cut debt and improve governance. Missing, but worthy of discussion, is the idea of dethroning boss Randall Stephenson. The reticence may reflect that Elliott can’t fight this one alone.

Climate-activist investors are due for a new dive

3 September 2019

Treating and moving water can account for 20% of energy use. And many companies are ignoring the risk to their operations of too much or too little of the liquid, judging by a recent industry conference. That presents fertile ground for pushy stock- and bondholders.

UK building supplier adopts Peltz’s American dream

3 September 2019

Ferguson plans to spin off its British unit and focus on the United States, as suggested by the activist. Trading more in line with U.S. peers should boost shares in the 14 bln pound group. But UK-based holders could make moving the primary listing to New York a tough project.

Hotelier bidding war may be Japanese wakeup call

3 September 2019

Travel agent H.I.S. ended its unsolicited tilt at Unizo, ceding to SoftBank-owned investment firm Fortress. The unusual hostilities for Japan helped the target’s stock price more than double. This deal, enabled by wider reforms, suggests more value could be hidden in plain sight.

Dan Loeb could give Ray-Bans a better look

26 August 2019

The pushy U.S. investor is building a stake in $63 bln EssilorLuxottica, maker of the sunglasses brand and others. Although his plans are unclear, the company has unveiled another big deal despite the lack of a CEO and messy corporate governance. A fresh outside lens may help.

Cigs show challenge of putting stakeholders first

22 August 2019

Tobacco companies that were run for customers rather than shareholders would aim to reduce sales of their noxious products. But less scrupulous rivals can undermine solitary socially conscious CEOs. Without collusion or new laws, corporate virtue-talk is mostly a smokescreen.

Investors can give Imperial Brands a bit more time

20 August 2019

Some shareholders are gagging for cash from more asset sales. They’re rightly angry about the tobacco firm’s share price collapse. But striking good deals for cancer sticks might be tricky. Beleaguered management would do better to focus on rolling out less harmful products.

Knight Vinke tilts at new European energy windmill

20 August 2019

The activist investor doesn’t want its 1.3% stake in Swiss utility Alpiq to be squeezed out in a delisting. The offer does look undervalued. But as with its other European energy interventions, Knight Vinke’s worthy crusade for shareholder justice faces stiff headwinds.

Scout24 demonstrates how not to deal with Elliott

13 August 2019

The $6 bln German classifieds group may sell its automotive arm - a key request of the U.S. activist hedge fund which owns 7%. Scout boss Tobias Hartmann could have announced the no-brainer months ago after a failed buyout. Instead he waited, and Elliott has him on the back foot.

DowDuPont shows M&A demands timing – and humility

25 July 2019

Two chemical companies merged to form a $130 billion behemoth and then split into three. The goal was to boost shareholder value. That has so far been thwarted by the business cycle and other factors. Complexity has also played a role. It’s a lesson for ambitious dealmakers.

Renault’s de-Ghosnification helps up to a point

25 July 2019

The French carmaker is parting ways with bankers and other consiglieri tied to former CEO, and recent Japanese jailhouse guest, Carlos Ghosn. It may help Chairman Jean-Dominique Senard put his stamp on the $17 bln group. But the government is still an obstacle to merger hopes.

Suez boss gets helpful kick in derriere from Amber

18 July 2019

The 8 bln euro French utility, whose history includes the Egyptian canal’s construction, presents a juicy target for the activist. Bertrand Camus just took the reins in May, following years of crummy empire-building returns. He should welcome Amber’s thoughtful approach.

Bill Ackman finds activist attention unappealing

18 July 2019

The hedge fund boss’s $4 bln London-listed fund has incurred investor wrath over its low price and a bond issue. The prescription is activism 101: buy back stock and shake up the board. Ackman, for once a target, may find new sympathy for the defence that he just needs more time.

Elliott’s Saga raid rests on insurance revival

17 July 2019

The activist has boarded the UK group which flogs cruises and cover to the over-50s. A breakup may rejuvenate shares which have halved since early April, but a turnaround depends on its biggest unit. At least the investor can steer the choice of CEO Lance Batchelor’s successor.

EQT victors have two sets of activists to please

10 July 2019

The Rice brothers have won control of the underperforming $4 bln U.S. natural-gas producer which bought their company in 2017. They aim to turn around EQT within a year. Skeptics of the original tie-up, like Jana, will be watching – and climate-aware investors could show up, too.

Indian media mogul’s buyout buries the tech lead

8 July 2019

Minority shareholders are challenging a valuation of Vineet Jain’s empire. Stakes in Uber and other startups, some acquired in exchange for newspaper ad space, may not be fully reflected in the offer price. It’s a twist on holding company discounts faced by the likes of SoftBank.