Equality is failing at shareholder ballot box, too 17 Jul 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 Jul 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 Jul 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 Jun 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 Jun 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 Jun 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 Jun 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 Jun 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 Jun 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 Jun 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.
Activist curve will get flattened by the pandemic 28 May 2020 Dozy boards are crying out for prodding as Covid-19 ravages businesses. But balance sheets will need to be more, not less, robust. And pushy investors can hardly point to great returns. After years of barging down doors, they should prepare to have more slammed in their faces.
Jamie Dimon returns to a changed investor climate 19 May 2020 Shareholders fired warning shots at the JPMorgan boss, recently back from surgery. An investor’s push for better information on climate risk is close to passing. The largest minority ever wants an independent chairman. Dimon’s remaining years in charge might not be easy.
Climate activists get bigger bang from smaller ask 11 May 2020 U.S. fossil-fuel firms have been more resistant to shareholders’ demands on global warming than European rivals. But a majority of Phillips 66 owners just backed a climate vote that Exxon and Chevron will soon face. The activists’ success may be down to their more targeted scope.
Bolloré offers Lagardere costly activist defence 22 Apr 2020 Vivendi, controlled by corporate raider Vincent Bolloré, has taken an 11% stake in the besieged French media company. That may help boss Arnaud Lagardere fend off hedge fund Amber Capital. The reward could be the chance to snap up the group’s prize publishing arm for himself.
ValueAct nudges Nintendo to ditch the joystick 22 Apr 2020 The U.S. investor disclosed a $1 bln stake in the maker of Super Mario. Unlike the typical activist target, Nintendo is well run and outperforms rivals. But its focus on consoles looks short-sighted. As it did with Microsoft, ValueAct can push Nintendo in the right direction.
Buffett may end up Occidental’s owner-by-accident 15 Apr 2020 The Sage of Omaha struck a clever deal with the shale driller by investing $10 bln through preferred shares. Now the oil price has halved, and on paper Occidental’s regular equity may be almost worthless. The true price of Buffett’s help is becoming clear.
ValueAct slides an atypically ajar shōji 14 Apr 2020 After a victory at Olympus, the U.S. investor is trying to push open the latticed door at $4 bln JSR. Unusually for a Japanese company, the synthetic rubber and chemicals maker has a foreign CEO and regularly pays out cash. That means it could be receptive to an outsider’s ideas.
Poison pills don’t always taste so bitter 9 Apr 2020 Boards sometimes use these defenses to deflect activists or unwanted bidders. Restaurant chain Dave & Buster’s may have found a less suspect use. Its pill could help it get raider KKR to buy shares directly rather than in the market – and put cash into the company in the process.