Kaz Minerals minorities should quit while ahead 4 Feb 2021 The copper miner’s two biggest investors have increased their takeover bid to 3.7 bln pounds. The new offer is still not exactly a knockout, but Kaz Minerals warrants a discount given much of its value is tied up in one risky project. Minorities should take what’s on the table.
Corona Capital: Exxon, Uber 2 Feb 2021 Concise views on the pandemic’s corporate and financial fallout: Exxon dodges M&A questions, while Uber guzzles up a beverage delivery firm.
Corona Capital: GDP, Corruption, Norway 28 Jan 2021 Concise views on the pandemic’s corporate and financial fallout: U.S. output growth slows from a surge to a gentle trot; Transparency International flags that corruption and pandemic-fighting don’t mix; and Norway’s sovereign wealth fund sees its tech bets pay off.
Climate activists melt Exxon glacier of truculence 27 Jan 2021 The $194 bln oil giant has largely ignored investors worried about the environment and that oil's best days are over. Now it may add independent directors, make greener investments, and cut capex. Credit squeaky activists plus a rumbling threat from institutions like BlackRock.
Activists kick open lab doors at pharma laggards 25 Jan 2021 AstraZeneca’s $39 bln takeover of Alexion highlights the growing influence of pushy shareholders such as Elliott in healthcare. Drugmakers are tricky targets, but waste and inefficient markets create opportunities. Medical technology groups, like Fresenius, could be next.
DowDuPont activist legacy spawns new activism 21 Jan 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 Jan 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 Jan 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 Jan 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 Jan 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 Dec 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 Dec 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 Dec 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 Dec 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 Dec 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 Dec 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 Dec 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 Dec 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 Dec 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 Nov 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.