Shareholder Activism

Deutsche Bank chair faces shareholder reckoning

29 April 2019

Failed merger talks with Commerzbank are another blot on Paul Achleitner’s seven-year tenure at the German lender. A vote against Bayer bosses suggests investors are becoming more vocal. With his own May 23 judgment day looming, Achleitner has a tough job arguing for continuity.

European energy’s biggest M&A impasse has an exit

26 April 2019

Activist Knight Vinke has an idea to break the stalemate preventing Finnish group Fortum from taking control of 10 bln euro German utility Uniper. Splitting the latter’s business requires fellow investor Elliott and the two companies to compromise. That’s better than gridlock.

Bayer shareholder revolt rests on shame factor

25 April 2019

BlackRock and others want to punish the German chemicals group for its takeover of Monsanto, which destroyed $33 bln of value. But the likely vote of disapproval is more bad PR than a binding order. It’s a sign of the limits of shareholder activism in Germany.

Barclays bolsters devil-you-know retort to Bramson

25 April 2019

The UK bank’s traders made a 9 pct return in the first quarter. They’re still not earning their keep, but the result shows the merits of a broad investment bank. That, and a pledge to prune bonuses, may help investors resist the upheaval touted by activist Edward Bramson.

Elliott cloud-computing bet rests on dumb markets

24 April 2019

The activist group revealed a $1.4 billion stake in German software giant SAP, and backed its management. The fund’s own analysis implies the stock could double, but looks out of kilter with analysts’ forecasts. The bold call means SAP needs to move quickly to keep Elliott sweet.

Dan Loeb can help Sony handily sharpen its picture

10 April 2019

The activist’s return to the $60 bln PlayStation-maker provides a catalyst to break the company into a pure-play chips business and a more-focused entertainment group coveted by Apple, Amazon and Netflix. By exiting phones and selling insurance, it can also better compete.

Loeb’s Sony sequel has makings of a blockbuster

8 April 2019

The activist behind Third Point is building a stake in Sony and getting the Japanese group to sell its movie studio could be part of the plan, Reuters reported. The media landscape has changed since Dan Loeb last tried to break Sony up. The idea looks ready for prime time.

Vincent Bolloré eyes honourable surrender in Italy

29 March 2019

Vivendi, controlled by the French tycoon, is withdrawing its plan to throw five directors appointed by Elliott off the board of Telecom Italia. The move spares Bolloré a messy defeat, but still leaves him stuck with rival Paul Singer. State investor CDP could act as a peacemaker.

Roundup crisis could snarl Bayer in activist weeds

29 March 2019

The chemicals maker has lost 40 bln euros in value since U.S. juries said its glyphosate herbicide causes cancer. With science on Bayer’s side, delaying any settlement makes sense. But the longer the German group’s shares remain low, the more vulnerable it looks to interlopers.

Shareholders suffer in EssilorLuxottica civil war

28 March 2019

Chairman and top shareholder Leonardo Del Vecchio is taking his conflict with the eyewear giant’s management to an arbitration court. The open warfare will slow merger integration at the 41 billion euro company. Investors are already counting the cost of infighting.

Activists target messy retailer for spring clean

26 March 2019

A trio of pushy investors wants to strip Bed Bath & Beyond of its CEO and board, and replace them with a fresh sheet of directors. The $2.4 bln chain is beset by poor governance, lackluster results and a plunging stock price. It’s long past due a thorough shake-out.

Hyundai shareholders can have it both ways

20 March 2019

Activist Elliott wants $7 bln in payouts from the South Korean autos group. Though Hyundai's R&D track record is weak, it can’t afford to throttle investment in the latest technology. Better to back the conglomerate's stingier proposals and then push for another modest dividend.

Starboard’s Bristol-Myers pitch needs an activist

19 March 2019

Pushy investors should keep their arguments tight. Starboard’s beef with the drug company’s $74 bln deal for Celgene does highlight overpayment and patent risks. But its 197-page presentation is as bloated as its target, containing contradictions and micromanagement.

Hostile Japanese deal propels Abe’s third arrow

18 March 2019

In a rare act of corporate aggression, trading house Itochu snatched a degree of control over $1.8 bln sportswear maker Descente. Toshiba faces an investor revolt, while Alps Alpine has been sued over governance. Japan’s structural reforms are faster finding their targets.

Environmental activism needs to up its game

15 March 2019

Pushy investors are getting what they want more often. But the profit motive and U.S. law give those with short-term financial agendas an edge – and hard-nosed financial raiders too easy a ride. Stressing how their goals benefit shareholders would lend ESG activists more muscle.

Peltz is triple threat of cannabis endorsements

13 March 2019

Aurora Cannabis gets three things from hiring activist Nelson Peltz as an adviser: financial credibility, consumer expertise and contacts at companies like P&G. Other investors can ride on his coattails. The catch is that VIP patrons like Peltz get terms mere mortals can’t touch.

TIM shareholders should reject Bolloré board slate

12 March 2019

The Vivendi boss wants to replace five directors of the Italian telco’s board with his own. They don’t deserve to win, and the French mogul is already well represented. But the infighting needs to end. After the vote, TIM needs to appoint a new chairman who can unite both fronts.

Bristol-Myers $74 bln deal needs surgery

28 February 2019

Big shareholder Wellington Management and activist Starboard Value have both come out against the pharma firm’s deal for Celgene. The market also isn’t pricing in the acquisition happening as Bristol-Myers envisaged. It doesn’t help that the buyer was already overpaying.

Dutch activism could ground Air France recovery

27 February 2019

The Hague has snapped up 12 percent of the carrier to counter the influence of the French government and protect Dutch jobs. More state meddling may undermine new boss Ben Smith’s cost-cutting plan, and exacerbate tensions with French unions, raising the risk of more strikes.

Driving hard bargain could backfire on Hyundai

27 February 2019

The Korean conglomerate's auto-parts unit has offered less than half the $2.2 bln dividend wanted by pushy Elliott. Meanwhile, Hyundai's carmaker rejected another of the activist's proposals. Stingier options may cost it investor support when it comes to a broader restructuring.