Shareholder Activism

LG missteps into chaebol-challenge spotlight

16 December 2020

A pushy investor is unhappy with a spinoff plan by the South Korean empire’s $12 bln holding company. The carve-up’s financial benefits are hard to identify. That brings unwanted attention to a pioneer in corporate restructuring just as the country angles for stricter measures.

Elliott can clean house in Public Storage

14 December 2020

Paul Singer’s fund wants the U.S.’s largest self-storage provider to junk its ultra-cautious debt strategy, plow cash into the business, and shape up governance. It’s an activist trifecta. But changes are needed to keep pace with the industry. Elliott has found easy pickings.

Activist minnow needs bigger fish to fry Exxon

7 December 2020

The $176 bln oil major has rarely listened to past investor pleas, so demands from a $40 mln stakeholder seems a non-starter. Yet its recent record of capital destruction may be enough for bigger funds to join in. Taking on the oil giant is a way to justify ESG lip service, too.

SoftBank derivatives U-turn fuels governance hopes

2 December 2020

CEO Masayoshi Son will ditch an unpopular options strategy, Bloomberg reported, only months after launching it. That’ll please investors who want the Japanese group to focus on asset sales and share buybacks. Their next target should be his $17 bln portfolio of technology stocks.

Elliott’s Swiss cookie raid merits activist slap

24 November 2020

Paul Singer’s fund made a 733 mln euro bid for debt-laden baker Aryzta. It comes as the Otis Spunkmeyer maker’s soggy valuation may gain from a plan backed by other investors to break it up. The easing pandemic gives shareholders reason to hold out for more.

Corona Capital: Vaccine storage

16 November 2020

Concise views on the pandemic’s corporate and financial fallout: Warehouse centers get another boost with Moderna’s vaccine prospects.

Elliott takes power punch to greener pastures

12 November 2020

Paul Singer’s fund wants utility Evergy to engage with NextEra, the largest U.S. renewable energy firm. Regulators have frowned upon NextEra’s ambitions. But its valuation helps justify deals without tasking ratepayers. Elliott’s presence might help Evergy get over deal-phobia.

Activists shove Unibail towards chastening Plan B

10 November 2020

French mogul Xavier Niel blocked the mall owner’s planned $4 bln rights issue. That’s embarrassing enough for Unibail boss Christophe Cuvillier. But the only realistic way to fix the balance sheet holes from the Westfield acquisition he masterminded is to sell valued U.S. assets.

SoftBank $97 bln cash pot is activist battleground

9 November 2020

That’s how much firepower CEO Masayoshi Son reckons his company will have after selling assets. He favours investing in artificial intelligence while pushy investor Elliott might prefer buybacks. Given the $130 bln company’s persistent discount, the latter makes far more sense.

UK manager for the rich makes worthy activist prey

27 October 2020

PrimeStone Capital has called for an overhaul at high-end wealth group St James’s Place, citing low returns. The investor’s small stake means CEO Andrew Croft may dismiss the salvo. But bringing costs more in line with rivals could give his $7 bln firm’s grubby valuation a boost.

Corona Capital: Gilead Sciences, Virtual Santa

23 October 2020

Concise views on the pandemic’s corporate and financial fallout: Remdesivir gets formal approval; Santa goes missing from Macy’s.

Unibail activist riot leaves leaky roof exposed

15 October 2020

Telecom mogul Xavier Niel and the mall operator’s former CEO want to block its $4 bln rights issue. Their plan to sell the U.S. business instead would save money but is trickier if Covid-19 persists. Doubling down on Europe also leaves the group more at risk from online shopping.

Comcast investors are almost getting free content

12 October 2020

Activist Nelson Peltz thinks the company’s shares are undervalued, and he has a point. The $205 bln firm trades at a discount to focused peers cable pure play Charter and media giant Disney. It suggests boss Brian Roberts could benefit from leading the charge on a breakup.

Dan Loeb sprinkles pixie dust onto Disney’s plans

8 October 2020

The activist wants the Magic Kingdom to axe its dividend and direct the annual $3 bln toward its streaming service. The yield is peanuts anyway, and Disney+ is the media giant’s growth engine. Catching up to Netflix requires capital. It’s an easy ask that can make an impact.

Altice’s vexed minorities may have a trump card

5 October 2020

Minority investors are livid at Patrick Drahi’s lowball 4.9 bln euro take-private offer for the European telco. On the face of it, the Franco-Israeli billionaire can use his 78% voting rights to steamroller their views. But a new piece of Dutch law may give them the last laugh.

Peltz puts the squeeze on middle-weight money men

2 October 2020

The activist’s fund Trian has taken big stakes in investment firms Invesco and Janus and wants to roll them up. Taking on powerhouses like BlackRock requires industry consolidation as low rates and fee pressure bite. Peltz may also benefit from good old-fashioned market timing.

Hong Kong lender tests Elliott’s patience anew

24 September 2020

After a long review, $6 bln Bank of East Asia is ready to sell its life insurer. It also promises better cost controls and hints at more deals. Since the pushy hedge fund showed up in 2015, however, the stock price has halved. Perseverance may be less rewarding than in Argentina.

Elliott mixes activism and a buyout, gets poison

22 September 2020

Paul Singer’s hedge fund amassed a 15% interest in Cubic, then offered to buy it. The transport and defense tech company responded with a poison pill, understandably on this occasion. Shareholders are hoping for a deal. But Elliott may have played its cards in the wrong order.

Nelson Peltz prods Comcast into a defining moment

22 September 2020

The activist’s hedge fund has taken less than 1% of the $204 bln entertainment firm. The small stake plus boss Brian Roberts’ big voting interest give the corporate cage rattler tough odds. Still Comcast, with its mix of pipes and content, leaves room for valuation improvement.

Bolloré pushes ahead in lengthy Berlusconi battle

6 August 2020

Thanks to an adverse Spanish court ruling, Mediaset, controlled by the Italian ex-PM’s family, now wants a truce with Vivendi, run by the French financier. The battle of egos and strategy is not fully over. But Bolloré can now help shape the $2 bln TV group’s expansion plans.