Oil giants’ setbacks turn BP from tortoise to hare 27 May 2021 Investors were initially sceptical about the UK major cutting fossil fuels, preferring the fuzzier plans of its U.S. and European rivals. Shell’s legal defeat and an investor revolt at Exxon Mobil change the game. Clarity on cutting emissions will increasingly support valuations.
Activist win at Exxon may change corporate America 26 May 2021 Dissident owners replaced at least two of the oil giant’s 12 directors, a huge feat. CEO Darren Woods and others are now on notice. A radical shift toward green energy is not easy. For Exxon, it may mean broader change, perhaps even an end to its century-old stock-market listing.
FirstGroup rebels may rue waiting for the next bus 25 May 2021 Two shareholders of the UK transport operator may vote against a $4.6 bln sale of its U.S. businesses to EQT. While no knockout, the price looks fair given the lack of other certain offers. A delay could destabilise the company when it needs to focus on opportunities at home.
Exxon’s necessary transition starts with the board 25 May 2021 Investors are being asked to vote on a welter of measures to fix the oil giant. Dissident shareholders and proxy advisory services disagree on what and how much needs to be done. Having more independent board voices with experience in energy firms undergoing big shifts is key.
GSK CEO’s best defence is a graceful exit 5 May 2021 The $93 bln drug company is under pressure after activist Elliott took a stake. Boss Emma Walmsley is splitting the group into two, but its struggling pharma unit faces a lengthy turnaround, and may benefit from a new leader. Walmsley could run the new consumer business instead.
Capital Calls: Pfizer, ConocoPhillips 4 May 2021 Concise views on global finance: About $6 bln of additional earnings from Covid vaccines at the U.S. drug giant should mean more capital returned to investors; the independent oil group is offloading stock in Canada-based Cenovus it collected as part of a deal four years ago.
New Zealand blends specially bright shade of green 21 Apr 2021 The United States and China are vowing to work together on decarbonisation. JPMorgan and Citi raised their sustainable-finance goals. Investors are pushing harder, too. A Kiwi plan to force banks and money managers to come clean about climate risks neatly ties it all together.
Toshiba CEO exit gives better governance a chance 14 Apr 2021 Nobuaki Kurumatani already was losing support from investors and staff. His ties to buyout bidder CVC may have cost him backing from directors too. The board can help make up for a series of missteps by running a robust sale process that secures a good deal for shareholders.
Box KKR deal kills two birds with three stones 8 Apr 2021 Activist Starboard Value wanted a sale of the $4 bln cloud-services group and board changes. Now KKR will invest $500 mln in convertible preferred stock, which Box will use to repurchase regular shares. Governance improvements are a plus, but it's a complicated way to buy time.
Right-wing activists pose challenge to ESG crusade 25 Mar 2021 The SEC may make it easier for investors to demand ballots on topics like climate change and racial justice. That could also let through conservative proposals firms like Intel and Verizon previously swatted away. Companies may just need to get used to the spirit of open debate.
Exxon’s inexperienced board leaves it exposed 22 Mar 2021 The $240 billion oil giant’s shares have fallen by more than a third in five years. Even with three new members, energy experience is limited. Showing shareholders that it will be solid stewards of capital is imperative. Otherwise, rival Chevron has a takeover opening.
Family feud presses Korea Inc to cry uncle 17 Mar 2021 A power struggle between Kumho Petrochemical’s chairman and his nephew is headed for a shareholder showdown. The dissident’s Elliott-like playbook already has persuaded the $6 bln company to improve governance and hike dividends. Winning a board seat would send a strong message.
Danone CEO exit gives France governance upgrade 15 Mar 2021 Boss Emmanuel Faber is leaving the 42 bln euro yoghurt maker after pressure from activist investors. It shows even French companies once declared strategic by the government are not safe from uppity shareholders. Underperformers whose chair is also CEO are now potential targets.
Bowing to activism may become too easy 5 Mar 2021 Danone and Exxon have revamped their boards after pressure from such investors. There’s less stigma these days in co-opting cage-rattlers. But the more easily activists get their way, the less rigorously demands will be vetted by other shareholders and in the public arena.
Capital Calls: Exxon, Greensill, Research SPAC 2 Mar 2021 Concise views on global finance in the Covid-19 era: U.S. securities regulators take on the oil giant; Investors in even lower-risk funds get nervy about the supply chain finance provider; And a supplier of picks and shovels to the online trading boom gets a blank-check listing.
Danone’s governance fudge sours activist defence 2 Mar 2021 Under pressure from shareholders, the $47 bln French food and dairy group said that Emmanuel Faber will give up his CEO role, but stay on as chairman. Faber’s continued influence may deter potential successors. The board’s decision to back his strategy also makes change harder.
Intel fab spinoff might double its value 19 Feb 2021 The $250 bln chipmaker trades at a big discount to both peers that design processors and rivals that produce them. Splitting would help new CEO Pat Gelsinger close the gap. But Intel’s size and worldwide capacity constraints mean a complete separation will take years.
Danone CEO upsets activist’s Nestlé-fication hopes 19 Feb 2021 Artisan wants the $47 bln yoghurt maker to dump food and water laggards and prioritise higher-margin lines. A focus on medical nutrition echoes the health science push of the Swiss giant, which has outperformed under pressure from Dan Loeb. But boss Emmanuel Faber is in the way.
Capital Calls: Bubble alert 16 Feb 2021 Concise views on global finance in the Covid-19 era: Bitcoin burst through $50,000, and global fund managers are maximum bullish on the pace of the recovery from the pandemic.
Capital Calls: Disney+, SPAC romance 12 Feb 2021 Concise views on global finance in the Covid-19 era: The entertainment giant’s streaming growth comes at a cost; blank-check companies are trashing all records in 2021.