Shareholder Activism

Time for Elaine Wynn to take break from the table

15 May 2018

The director targeted by the casino’s co-founder is leaving, as is another. With a refreshed board and new CEO, Wynn Resorts is well placed to move on from recent scandals. Unless she has suddenly hit on a new grand plan, Elaine Wynn would do well to leave them to it.

Xerox has one more chance for positive innovation

14 May 2018

The creator of laser printing and the GUI has been mired in a badly inked $6.1 bln sale to Fujifilm and far from user-friendly board governance. Carl Icahn and Darwin Deason have put an end to both. Xerox is in decline, but there’s still room for a clean, intuitive exit.

Chinese social network loses friends in new way

14 May 2018

Some Renren investors are unhappy about a deal to sell assets to a firm co-controlled by the CEO. The rationale for its low valuation of a stake in online lender SoFi looks thin. An antisocial share structure and Cayman Islands base, however, mean it's probably a losing battle.

Hardy Indian hospital auction takes sickly turn

11 May 2018

A divided Fortis board chose selling a minority stake to two investors with little experience running hospitals over four other offers, including a $1.3 bln takeover. Half the directors may be gone before shareholders vote. The disarray leaves room for a hostile bid.

Sturm Ruger owners show D.C. the way on gun safety

9 May 2018

Investors overrode executives to back a proposal from Catholic nuns demanding that the maker of AR-15 assault-style weapons report on what it’s doing to make firearms safer. It’s part of a growing realization that America’s gun violence problem has business implications, too.

Citi’s activist will struggle to justify its fee

7 May 2018

Pushy investors typically demand big changes. But ValueAct just wants the $180 bln lender’s CEO Mike Corbat to boost his buyback and returns targets a bit. If watchdogs, rates and the economy cooperate that should happen anyway. Banks like Citi no longer cry out for intervention.

A Fujifilm cash bid for Xerox would work on paper

8 May 2018

Carl Icahn is fighting the Japanese company's complex plan to take control of its U.S. partner, but he's open to a cleaner $11 bln deal. That just about stacks up for Fujifilm in terms of debt needed and an investment return. It'd be far harder to justify strategically, though.

Robo-Buffett no longer such a ridiculous notion

5 May 2018

The 40,000 crowding Berkshire Hathaway’s AGM didn’t come to hear buzzwords like “artificial intelligence.” Machine-driven investing, though, is eating into the Oracle’s competitive advantage. But for now, he has other differentiators – like zero fees, and a grasp of human nature.

Xerox directors jam company’s future for their own

4 May 2018

A deal with activist investors has foundered over extra legal cover for board members who were set to leave, including ex-Citi boss Chuck Prince. Now that they and discredited CEO Jeff Jacobson will stay, Xerox and its investors are in limbo. It’s a result best not copied.

Elliott wins partial victory at Telecom Italia

4 May 2018

The US activist succeeded in installing a majority of independent directors on the telco’s board, snatching control from investor Vivendi. Other shareholders will now be more fairly represented. But to keep CEO Amos Genish the directors will have to forget any strategy overhaul.

Elliott sends powerful signal with Seoul case

2 May 2018

The hedge fund wants payback from South Korea for a tie-up between two Samsung units. Fighting this under free-trade rules is highly unusual. But the scandal around the deal bolsters Elliott’s case and its determination puts other targets, like Hyundai, on notice.

Arconic is sorely testing Elliott’s mettle

30 April 2018

Investors wiped $2 bln off the parts maker’s value after it slashed its earnings outlook. Activist Elliott helped oust CEO Klaus Kleinfeld last year. But new boss Chip Blankenship faces the same old production snafus and aluminum price hikes. It’s looking like a long campaign.

GE can get ahead of chairman-CEO trend

25 April 2018

The conglomerate defeated a shareholder proposal to separate the top jobs. But 41 pct of investors supported the measure, up from 24 pct a year ago. Double-titled boss John Flannery could pre-empt an embarrassing rebuke next year, and improve governance, by embracing a split now.

Takeda’s stretch for Shire lets rivals limber up

25 April 2018

The Japanese drugmaker's fifth proposal for its Irish rival sweetens the bid to some $64 bln. The headline value, which uses a huge pile of stock for currency, is falling fast as Takeda shareholders recoil. That creates an opening for other suitors who can offer more hard cash.

Whitbread’s coffee spinoff is too slow

25 April 2018

The UK company is planning to hive off its Costa cafes less than two weeks after activist Elliott disclosed a 6 percent stake. That may lift the group’s undervalued shares and make the chain a bid target. But a 24-month timeline is too long for investors to wait for the takeaway.

USG bid upsets theory of the free-lunch Buffett

23 April 2018

Building-supplies maker Knauf is getting more hostile in its $5.9 bln bid for USG, whose biggest shareholder Berkshire Hathaway seems ready to sell. More recent buyers may not like the meager premium. Investing alongside Warren Buffett is no guarantee of aping his success.

Breakdown: Telecom Italia’s three-way poker game

23 April 2018

The incumbent telco is entangled in its umpteenth debilitating corporate fight. The row pits U.S. activist investor Paul Singer against French financier Vincent Bolloré. But an Italian state investor may be the key player. Breakingviews explains how the cards will fall.

Icahn offers poaching insurance for VMware

18 April 2018

A stake purchase by the activist investor could add friction in a potential merger of the $53 bln software company with its controlling shareholder Dell. Minority shareholders in VMware ought to expect fair treatment. Icahn's presence might help ensure they get it.

L&G’s gender revolt has revealingly low bar

17 April 2018

The 983 bln pound asset manager will vote against chairs at UK companies if boards have too few women. It’s a laudable move. But the 25 pct threshold looks low, and traps groups as big as Barclays or London Stock Exchange. Diversity in British boardrooms has a long way to go.

Volkswagen overhaul may give Carl Icahn a lift

16 April 2018

New CEO Herbert Diess is mulling an IPO for its truck unit. It’d be a smoother ride if VW boosts its minority holding in U.S. peer Navistar to a controlling stake. Icahn and two other pushy investors own 40 pct of the $3.9 bln outfit - and are likely to want a hefty premium.