Cigs show challenge of putting stakeholders first 22 Aug 2019 Tobacco companies that were run for customers rather than shareholders would aim to reduce sales of their noxious products. But less scrupulous rivals can undermine solitary socially conscious CEOs. Without collusion or new laws, corporate virtue-talk is mostly a smokescreen.
Investors can give Imperial Brands a bit more time 20 Aug 2019 Some shareholders are gagging for cash from more asset sales. They’re rightly angry about the tobacco firm’s share price collapse. But striking good deals for cancer sticks might be tricky. Beleaguered management would do better to focus on rolling out less harmful products.
Knight Vinke tilts at new European energy windmill 20 Aug 2019 The activist investor doesn’t want its 1.3% stake in Swiss utility Alpiq to be squeezed out in a delisting. The offer does look undervalued. But as with its other European energy interventions, Knight Vinke’s worthy crusade for shareholder justice faces stiff headwinds.
Scout24 demonstrates how not to deal with Elliott 13 Aug 2019 The $6 bln German classifieds group may sell its automotive arm - a key request of the U.S. activist hedge fund which owns 7%. Scout boss Tobias Hartmann could have announced the no-brainer months ago after a failed buyout. Instead he waited, and Elliott has him on the back foot.
DowDuPont shows M&A demands timing – and humility 25 Jul 2019 Two chemical companies merged to form a $130 billion behemoth and then split into three. The goal was to boost shareholder value. That has so far been thwarted by the business cycle and other factors. Complexity has also played a role. It’s a lesson for ambitious dealmakers.
Renault’s de-Ghosnification helps up to a point 25 Jul 2019 The French carmaker is parting ways with bankers and other consiglieri tied to former CEO, and recent Japanese jailhouse guest, Carlos Ghosn. It may help Chairman Jean-Dominique Senard put his stamp on the $17 bln group. But the government is still an obstacle to merger hopes.
Suez boss gets helpful kick in derriere from Amber 18 Jul 2019 The 8 bln euro French utility, whose history includes the Egyptian canal’s construction, presents a juicy target for the activist. Bertrand Camus just took the reins in May, following years of crummy empire-building returns. He should welcome Amber’s thoughtful approach.
Bill Ackman finds activist attention unappealing 18 Jul 2019 The hedge fund boss’s $4 bln London-listed fund has incurred investor wrath over its low price and a bond issue. The prescription is activism 101: buy back stock and shake up the board. Ackman, for once a target, may find new sympathy for the defence that he just needs more time.
Elliott’s Saga raid rests on insurance revival 17 Jul 2019 The activist has boarded the UK group which flogs cruises and cover to the over-50s. A breakup may rejuvenate shares which have halved since early April, but a turnaround depends on its biggest unit. At least the investor can steer the choice of CEO Lance Batchelor’s successor.
EQT victors have two sets of activists to please 10 Jul 2019 The Rice brothers have won control of the underperforming $4 bln U.S. natural-gas producer which bought their company in 2017. They aim to turn around EQT within a year. Skeptics of the original tie-up, like Jana, will be watching – and climate-aware investors could show up, too.
Indian media mogul’s buyout buries the tech lead 8 Jul 2019 Minority shareholders are challenging a valuation of Vineet Jain’s empire. Stakes in Uber and other startups, some acquired in exchange for newspaper ad space, may not be fully reflected in the offer price. It’s a twist on holding company discounts faced by the likes of SoftBank.
Elliott pounced on the wrong booze company 4 Jul 2019 The activist made a 1 bln euro bet on Pernod Ricard in December, arguing the French spirits group could be more profitable and better run. The Absolut maker’s shares have bounced 17% since. That’s about par with the market. But its arch-rival Diageo has done even better.
Carl Icahn lands blow on weakened Occidental 27 Jun 2019 The activist’s bid to oust four directors at the oil driller over its $38 bln purchase of rival Anadarko is overkill. The board will face a grilling next year anyway. But the rash deal has tested investors’ patience. Oxy might be wise to compromise and give Icahn a partial win.
Bayer takes small steps to placate shareholders 27 Jun 2019 The German drugs and seeds group has hired an expert adviser for its litigation over weed killer Roundup. That boosts the chances of a swift settlement. Yet, if boss Werner Baumann can’t revive Bayer’s lowly valuation and challenged business, pressure to break it up will grow.
Bowl is half full for Japanese toilet maker Lixil 26 Jun 2019 Shareholders of the $4 bln company reinstated the former CEO months after he left, and voted for directors he supported. Yet management-backed nominees won seats too. It's a corporate governance win that leaves a large and possibly contentious board to guide Lixil back to profit.
Pride brings out best in self-serving companies 25 Jun 2019 Big brands are flaunting their support for the LGBT community, including some who once did the opposite. It’s easy to be cynical, but if only short-term profit mattered, such gestures wouldn’t happen. With so much still to do, the support matters more than the motivation.
Greyhound activist gets few scraps from board coup 25 Jun 2019 Coast Capital failed in its move to revamp the board of FirstGroup, UK owner of the bus operator. True, Chairman Wolfhart Hauser won’t stand for re-election. But the board is mostly unchanged. And, having defeated one revolt, FirstGroup may take longer to break itself up.
U.S. bank shareholders are their own worst enemy 17 Jun 2019 Hopes of more M&A among the nation’s 5,000 lenders have put high valuations on even ho-hum targets. So buyers often can’t avoid the cardinal sin of diluting book value, even if cost cuts outweigh any premium. A Texas bank’s $2.1 bln takeover of a smaller rival is the latest case.
Dan Loeb pushes a hidden Sony jewel into the light 14 Jun 2019 The activist behind Third Point wants the $60 bln Japanese conglomerate to spin off its chips business. It's a sensible step to simplify the sprawl, even with trade tensions and cooling tech demand today. Autonomous cars and snazzy smartphones make its long-term prospects shiny.
Nelson Peltz snaps up $16 bln Brexit fixer-upper 13 Jun 2019 The activist investor has taken a 6% stake in London-listed construction group Ferguson. Selling the UK unit, which has been hit by dismal growth since the country voted to leave the EU, would boost profitability. Relisting in New York could help close a valuation gap with peers.