Shareholder Activism

Elliott’s latest Arconic activism is to save face

29 November 2018

Paul Singer’s hedge fund may revive private-equity interest in bidding for the $10 bln parts maker by ring-fencing its liability for a deadly 2017 London fire. But a sale is unlikely to produce much profit on a three-year investment. Even activists have to cut and run sometimes.

Dan Loeb’s soup victory is best served warm

26 November 2018

His activist fund Third Point is getting two members on Campbell Soup’s board. It’s a bigger win than the single seat cage-rattler Nelson Peltz got at P&G. Still, Loeb has been highly critical of Campbell, and his tactics were more aggressive. He has some buttering up to do.

Investors can do more to rein in UK executive pay

22 November 2018

Shareholders want boards to stop granting bosses more generous pensions than workers, and to claw back awards when things go wrong. That’s a sensible response to an outbreak of investor revolts. To avoid egregious payouts, though, companies also need to put a cap on compensation.

Telecom Italia’s new boss faces old challenges

19 November 2018

Luigi Gubitosi has replaced Amos Genish as head of the Italian telco. With backing from activist investor Elliott, he will try to engineer a complex network breakup and sell assets. But bitter opposition from 24 pct shareholder Vivendi will make the strategy hard to execute.

CEO exit will escalate Telecom Italia brawl

13 November 2018

The board’s decision to sack Amos Genish reflects heightened tensions between activist Elliott and top shareholder Vivendi over the Italian telco’s future. Their next battle will be over the mooted breakup of the group. With competition at home, the timing could hardly be worse.

Elliott’s Athenahealth deal leaves sickly odor

12 November 2018

The activist is helping take private the healthcare firm it started agitating against 18 months ago. But at $5.7 bln the deal is some 16 pct below its May offer – and Elliott is relying on a partner to buy the lion’s share. Such tactics may not play well against future targets.

Toshiba boss channels Lou Gerstner’s IBM overhaul

8 November 2018

Nobuaki Kurumatani’s five-year strategic plan will slash costs, buy back stock and put a greater emphasis on selling services. That echoes the successful playbook used by another outsider, when he took over at Big Blue 25 years ago. It’s a smart, if tough, path for Toshiba.

Toshiba to-do list includes shareholder shakeup

7 November 2018

Pushy U.S. hedge funds and other foreigners control over 70 pct of the $19 bln conglomerate after near death cost it a spot in Japan’s big indexes. Rejoining sooner than 2022 will be tough. The new strategy due on Thursday needs to be clear and bold enough to prevent an insurgency.

Activism needs an Evelyn Davis more than ever

6 November 2018

The investor infamous for excoriating U.S. corporate bosses has died age 89. Often tactless, and an unabashed self-promoter, she championed shareholder rights. New challenges like passive investing, poor tech governance and climate risk are crying out for a voice like hers.

Dan Loeb wins if he loses at Campbell Soup

1 November 2018

The activist rightly blames bad dealmaking for the near-halving of the foodmaker’s share price, and wants shareholders to replace the whole board. Yet cost cuts from those bad deals should raise Campbell’s valuation whatever happens. A mass ousting is neither likely nor helpful.

Guest view: Activist wolves at the window

22 October 2018

Investors who creep up on U.S. companies have an unfair advantage: flawed rules give them a leisurely 10 days to disclose their stake. Activists have a place, but they ought to face the same time and transparency requirements as their targets, argues Lizanne Thomas of Jones Day.

Dollar Tree proves money doesn’t grow on mergers

17 October 2018

The $20 bln U.S. ultra-discount chain has lost a quarter of its value in nine months. That’s despite winning a fight to acquire Family Dollar in 2015 and beating merger cost-cut targets. Now activist Carl Icahn may be buying shares. Deals only buy time for struggling retailers.

Peltz pizza tie-up is missing one ingredient

9 October 2018

Papa John’s is an ideal target for activist Nelson Peltz, who has a big stake in Wendy’s and experience fixing struggling consumer companies. Getting founder John Schnatter on board is essential, though, and that’s a challenge even for an investor used to boardroom conflict.

Unilever bows to corporate version of Brexit revolt

5 October 2018

The Anglo-Dutch group ditched a vote to move its head office to the Netherlands after UK shareholders rebelled. The saga shows the limits of the special treatment that large multinationals can ask from politicians. It also demonstrates what investors can do when they join forces.

Highfields a warning to budding pushy shareholders

4 October 2018

The $12 bln behind-the-scenes activist is closing amid low returns that also hit rivals. Yet investors are still throwing money at the strategy. High-profile battles waged by funds from Third Point to CalSTRS grab headlines. But poor profits make steering clear a better bet.

Unilever should delay its head office vote

3 October 2018

A growing number of UK shareholders oppose the Persil maker’s choice of Rotterdam as its base. Postponing the vote would give investors more clarity on Dutch tax changes, and Unilever more time to spell out the benefits of the shift. Pushing ahead risks an embarrassing defeat.

BHP can hide behind Unilever dual-listing mutiny

2 October 2018

Some big shareholders oppose the Dove soap maker’s plan to switch to one, Dutch, headquarters. Pushy investor Elliott has been calling for a similar corporate overhaul at the world’s largest miner. There are differences, but the campaign for simplicity just got more complicated.

Gun activists’ victory is only a warning shot

25 September 2018

Investors just demanded Smith & Wesson’s owner publish a report detailing how its weapons abet violent crime and what it’s doing to create safer firearms. For now they can’t do much more. Eventually, market forces are likely to achieve what shareholder activists still can’t.

Unilever has itself to blame for investor revolt

25 September 2018

A growing group of shareholders want to block the Pot Noodle maker’s plan to pick Rotterdam over London as its global HQ. The move’s benefits are overshadowed by uncertainty over how UK investors will be taxed. Rushing the decision has left Unilever more vulnerable to opposition.

Thoughts and prayers could pierce gunmakers’ armor

24 September 2018

A group of church leaders is taking on the maker of Smith & Wesson in a shareholder meeting, hoping to reprise their earlier success with Sturm, Ruger. This battle will be tougher, but winning isn’t really the point. More help could come from unexpected places – like Silicon Valley.