Dan Loeb kicks on open door with Pru breakup plan 24 Feb 2020 The outspoken investor has called for $47 bln UK insurer Prudential to carve itself up. There’s plenty of value to be unlocked by separating the fast-growing Asian business from the sleepier U.S. retirement unit. An open-minded board means Loeb won’t have to shout too loudly.
JPMorgan’s days as governance bugbear are numbered 19 Feb 2020 Lead director Lee Raymond is a bete noire for investors worried about climate change. Yet shareholders consistently re-elect him, favoring the bank’s strong performance over its weak oversight. When CEO Jamie Dimon retires, JPMorgan’s exceptionalism ought to depart with him.
Kirin fight taps into Japan’s tolerance for change 19 Feb 2020 A pushy investor makes a persuasive case for the $18 bln brewer to improve governance and ditch pharma and beauty holdings. The company offered a weaker board shakeup and pay-plan revision. In a country renowned for corporate rigidity, the sops could prevail in a proxy battle.
Viewsroom: SoftBank in the crosshairs 13 Feb 2020 Activist Elliott is targeting Masayoshi Son’s firm for poor governance and performance. SoftBank could appease the hedge fund by selling investments to finance buybacks. That could include Sprint, whose deal with T-Mobile US just got the nod. Plus: the race for the White House.
Breakdown: SEC picks wrong target in proxy war 12 Feb 2020 The U.S. watchdog wants new rules constraining so-called proxy advisers like Glass Lewis and ISS, which help shareholders vote at annual meetings. Breakingviews explains how comments on the proposals – and who they came from – make a better case for proxy firms than against them.
Activist swing at Japan arena puts buyers on deck 7 Feb 2020 Stodgy Tokyo Dome, the $870 mln owner of the Yomiuri Giants’ home baseball field, has been targeted by pushy investor Oasis. Many modernisation suggestions, such as installing digital ad screens, should be home runs. Recalcitrance could attract pitches from private equity.
Elliott’s hard nose meets with Son’s SoftBank 6 Feb 2020 It’s logical Paul Singer's activist firm should take a swipe at Masayoshi Son’s undervalued $90 bln empire. Debt, bold – or foolhardy – tech investments like WeWork, and one man’s concentrated influence all make SoftBank a target. It’s a test of the scope to rein in a visionary.
Elliott’s friendly tech bet faces tough second act 28 Jan 2020 Shares in SAP are up 19% since the activist unveiled a stake. Investors seem to believe the $160 billion company will hit ambitious targets endorsed by Paul Singer’s fund. But tough competition and increasingly muddy governance mean there is limited scope for further quick wins.
Investors and EU can marginalize U.S. on climate 27 Jan 2020 Commerce Secretary Wilbur Ross says the White House might deem a European carbon tax on imports protectionist. That exposes one of the problems with regional solutions to global warming. Allying with global investors would help create more powerful sticks and carrots.
Capgemini victory over Elliott comes with baggage 27 Jan 2020 The French IT group won a $4.1 bln bid to take control of Altran, which the New York activist tried to veto. The victory is a coup for CEO Paul Hermelin, who steps down in May. But Elliott can block a full takeover. That presents an integration headache for successor Aiman Ezzat.
Xerox’s HP bid walks, quacks like Carl Icahn 22 Jan 2020 The printer maker may try to oust most of HP’s directors to win support for its $33 bln merger proposal. HP’s intransigence isn’t constructive, but its board is stronger. A proxy fight could leave Xerox activist Icahn in control, with only a small share of the company.
Climate push matters to BlackRock’s earnings, too 15 Jan 2020 Investors want sustainability built into portfolios so Larry Fink, CEO of the $7.4 trln asset manager, sees an opportunity. That makes efforts to prod the corporate world more sustainable, and adds market-wide pressure to one-off campaigns by firms like Jeff Ubben’s ValueAct.
Capgemini blinks first in Elliott face-off 14 Jan 2020 The French IT services group has raised its offer to buy $4 bln Altran despite previously insisting it wouldn’t. CEO Paul Hermelin is hoping that swallowing his pride will get him what he wants. But a modest $140 million bump up is unlikely to placate the holdout U.S. activist.
Elliott doubles down on Capgemini game of chicken 8 Jan 2020 The U.S. activist will not tender its 14% stake in Altran, which the French consultancy wants to buy for $4 bln. Buoyant markets should limit Elliott’s downside if the deal fails. And if Capgemini secures a majority, a legal trial may yet give investors a shot at a higher price.
Guest view: How to cut the ESG disclosure overload 7 Jan 2020 The data Fortune 500 companies provide on environmental, social and governance risks can be overwhelming, hard to compare and lacking much financial use. Geoffrey Heal and Shiva Rajgopal of the Columbia Business School lay out a plan to clean up the informational morass.
Xerox colors in its avant-garde HP outline 6 Jan 2020 The copier group now has bank commitments for $24 bln of debt for its Carl Icahn-backed $33 bln bid to buy larger rival HP. That removes one big question about a proposed deal that still seems the wrong way around. It puts pressure on HP to talk, or come up with something better.
Viewsroom: Jack Dorsey’s heroic year ahead 19 Dec 2019 From banning political ads to developing cryptocurrency plans, the CEO of Twitter and Square has been politically more astute than rivals like Facebook. That sets him up for a good 2020. Also: the different ways that shareholders, the Fed and M&A bankers will tackle climate risk.
Doctors’ office M&A machine may not be curable 11 Dec 2019 Activist Starboard is rattling the cage at Mednax. The $2 bln U.S. physician rollup is unravelling, with stalled revenue and rising staff costs. Yet private equity’s experience with rivals like Envision is not great, either. Milking people businesses for cash just may not work.
Colony Capital is easy target even minus politics 26 Nov 2019 Activist investor Blackwells Capital wants Tom Barrack, the real-estate veteran and backer of Donald Trump, ousted as the asset manager’s CEO. Barrack has probably been distracted. But lousy returns on Colony’s stock and poor governance are enough to justify a shareholder revolt.
Capgemini’s clock is ticking in Elliott standoff 15 Nov 2019 The French IT group’s $4 bln deal for Altran is being held up by the activist fund and separate legal action. CEO Paul Hermelin is due to pass the torch to his successor next year. Sweetening the offer to ensure 50.1% of Altran shareholders tender would be a nice parting gift.