Shareholder Activism

Hong Kong lender tests Elliott’s patience anew

24 September 2020

After a long review, $6 bln Bank of East Asia is ready to sell its life insurer. It also promises better cost controls and hints at more deals. Since the pushy hedge fund showed up in 2015, however, the stock price has halved. Perseverance may be less rewarding than in Argentina.

Elliott mixes activism and a buyout, gets poison

22 September 2020

Paul Singer’s hedge fund amassed a 15% interest in Cubic, then offered to buy it. The transport and defense tech company responded with a poison pill, understandably on this occasion. Shareholders are hoping for a deal. But Elliott may have played its cards in the wrong order.

Nelson Peltz prods Comcast into a defining moment

22 September 2020

The activist’s hedge fund has taken less than 1% of the $204 bln entertainment firm. The small stake plus boss Brian Roberts’ big voting interest give the corporate cage rattler tough odds. Still Comcast, with its mix of pipes and content, leaves room for valuation improvement.

Bolloré pushes ahead in lengthy Berlusconi battle

6 August 2020

Thanks to an adverse Spanish court ruling, Mediaset, controlled by the Italian ex-PM’s family, now wants a truce with Vivendi, run by the French financier. The battle of egos and strategy is not fully over. But Bolloré can now help shape the $2 bln TV group’s expansion plans.

Hostile takeover tests Japanese love for free food

27 July 2020

Restaurant chain Ootoya rejected a bid from Colowide, saying it would spoil its home-style ethos. The company is hoping its retail investors will remain loyal to the dining coupons they get for holding shares. They would be better off taking the 46% premium, and dining elsewhere.

Corona Capital: Movies, Sports

24 July 2020

Concise views on the pandemic’s corporate and financial fallout: Walt Disney is pushing back the highly anticipated movie “Mulan,” with a domino effect for “Avatar” and “Star Wars” sequels; and sport stars are still making it rain when it comes to pay.

Viewsroom: Europe’s big money moment and baijiu

23 July 2020

The 750 bln-euro stimulus package agreed to by EU leaders this week was a test of the region’s political resiliency, may be a big deal for the single currency and could lead to more capital markets and M&A activity, EMEA Editor Peter Thal Larsen explains. Plus, a shot of Moutai.

Corona Capital: LatAm pensions, Activism

23 July 2020

Concise views on the pandemic’s corporate and financial fallout: Pension reform in Mexico and Chile gets a coronavirus makeover; UK chief executives catch a break during lockdown as the number of activist campaigns collapses.

Equality is failing at shareholder ballot box, too

17 July 2020

Investors rarely push for votes advocating greater diversity and garner little support when they do, in part due to financial-industry demographics. George Floyd’s death may change that. But firms have a lot of latitude to downplay investor votes – unless they’re about pay.

Toshiba mistakes activist opportunity for a threat

17 July 2020

The $15 bln conglomerate says that allowing pushy Effissimo to install directors would create conflicts of interest. Since overhauling the board, however, Toshiba’s performance has underwhelmed. Adding its biggest investor would be a confident move for the company and Japan Inc.

Elliott’s new target looks only weakly defended

6 July 2020

The hedge fund wants $71 bln telecom-tower operator Crown Castle to invest less in fiber networks and pay more in dividends. The company says returns will come with time. That's fair, but its credibility is undermined by limited disclosure and an obviously substandard board.

Activists are ready to play, but lack playbook

30 June 2020

JPMorgan reckons market conditions have been ripe for pushy investors to set their sights on new target companies. The pandemic fallout could force lots of changes and deals. Yet traditional activist ideas and a near-exclusive focus on shareholder value may not cut it.

Corona Capital: U.S.-China fight, Canada downgrade

25 June 2020

Concise views on the pandemic’s corporate and financial fallout: Washington deploys sanctions over Hong Kong, adding to trade and Covid-19 tensions; and a double whammy of the coronavirus and low oil prices costs Canada one of its AAA ratings.

Bill Ackman bests Goldman Sachs in SPAC race

23 June 2020

Both are launching blank-check companies designed to buy private firms. Goldman’s is smaller, and rides on its contacts and cachet. Ackman’s could reach $6 bln, and adds some governance-friendly tweaks. Short-term investors will probably prefer Goldman’s; Ackman may hope they do.

Lufthansa bailout rebel has jobs trump card

23 June 2020

Billionaire Heinz Hermann Thiele may nix the airline’s $10 bln rescue if Berlin doesn’t sweeten its terms. It looks rash: blocking the deal would crash the 79-year-old’s 16% stake. Yet insolvency could cost jobs and dent Germany’s reputation. The government may be first to fold.

Elliott tests activist limits with insurance foray

17 June 2020

Paul Singer’s fund is calling for change at $11 bln Dutch life group NN. Some of its demands, such as selling non-core assets, make sense. Others, like cutting costs and piling into riskier debt will be a harder sell. The Covid-19 crisis makes insurers an even trickier target.

Pearson is poster child for post-pandemic activism

12 June 2020

Cevian Capital has revealed a 5% stake in the ailing education group, sending its shares up 12%. Though the company lagged under departing CEO John Fallon, it should benefit from a long-term shift to more online learning. Pressure from a patient but persistent activist will help.

Cerberus’ Commerzbank tilt has more bark than bite

10 June 2020

The U.S. fund wants to name two board members at the $6.4 bln lender. That’s more than its 5% stake warrants. And the move, weeks after an annual meeting, is oddly timed. Cerberus is right to push for cuts, but an aggressive approach may backfire at the partly state-owned bank.

Twitter can’t please everyone but still has to try

28 May 2020

Fact-checking a President Trump tweet has put founder Jack Dorsey in a political spotlight he had previously avoided. A spring clean of tweets is good for business in the long term. But unlike peers, Dorsey needs to please shorter-term investors too, like activist fund Elliott.

Exxon climate activists can call in reinforcements

28 May 2020

Environment-linked resolutions won less backing at the $193 bln energy firm’s annual meeting on Wednesday than at rivals’. Replacing directors is the next logical step. It’s a task traditional activists are more used to – and Exxon’s poor financial record could pull them in.