Agarwal’s Anglo carve-up has a new stumbling block 21 Feb 2019 The Indian tycoon’s rent of a fifth of the mining group’s shares implies he might want to lobby for a breakup. To do so he’ll need to get Anglo American’s next biggest investor, South Africa’s state pension fund, on side. That’s beginning to look less and less likely.
Blackstone cast-offs offer easy fit for Elliott 19 Feb 2019 The activist has snapped up a 6.1 percent stake in Dutch fund services group Intertrust. Its stock has languished since Steve Schwarzman’s private equity group listed it in 2015, due to disappointing margins. A cheap valuation means Elliott may not need to roll up its sleeves.
Italian grudge may steer Vivendi’s big M&A mandate 18 Feb 2019 Vincent Bolloré may be sore about JPMorgan’s work with activist Elliott in Italy. Yet the U.S. bank’s analysts lead the pack in valuing Universal, at a whopping $50 bln. As the media group chooses advisers to sell half of Taylor Swift’s music label, bygones may not be bygones.
Vincent Bolloré shores up Vivendi activist defence 15 Feb 2019 The French billionaire treats the media group like a family hedge fund. The latest instance is a new share buyback that allows the tycoon to boost his control without personally coughing up a penny. Any activist that wants to improve governance will have to move quickly.
Elliott kicks China’s EDP bid when it’s down 14 Feb 2019 The activist investor objected to China Three Gorges’ offer for the Portuguese utility. The deal was struggling, and Elliott’s plan, to invest in renewables, isn’t controversial. But the Chinese group’s large shareholding could still be a problem for Paul Singer’s fund.
JAB offer for Coty puts lipstick on a pig 12 Feb 2019 The investment firm’s bid to take a majority stake in the troubled perfumer has more than a whiff of opportunism. Coty’s shares collapsed after a bad deal that JAB masterminded. Stopping short of a full takeover shortchanges shareholders, and suggests JAB isn’t yet done meddling.
Just Eat could prove a tasty M&A morsel 11 Feb 2019 The 4.9 bln pound UK food-delivery group is leaderless and faces an activist investor. It could keep investing in its delivery services to fend off Uber, but peers like Takeaway.com and Delivery Hero are doing the same. Just Eat’s cut-price valuation could force the board’s hand.
Sony’s record share splurge misses the big picture 8 Feb 2019 Fresh from reporting lacklustre earnings, the electronics giant says it will buy back nearly $1 bln worth of stock. It’s a sign of boss Kenichiro Yoshida’s confidence. To boost longer-term returns, though, he needs to convince investors a much-needed overhaul is also underway.
Pernod Ricard half answers Elliott critique 7 Feb 2019 The spirits maker converted more sales into operating profit in the second half of 2018, and promised higher growth and more savings. That addresses some of the activist investor’s concerns. But it glossed over worries about the family-dominated board lacking outside perspective.
Hyperactive Elliott leaves Arconic in disarray 6 Feb 2019 The parts maker has a new CEO - its fourth since Paul Singer’s hedge fund first invested in 2015. The activist pushed out ex-boss Klaus Kleinfeld, helped pick most directors and backed a failed buyout by Apollo. Its minority stake has made it a force for agitation, not stability.
Irish cement maker needs repairs over demolition 6 Feb 2019 Activist Cevian has taken a stake in $25 bln building-products group CRH. A spinoff of the undervalued U.S. business might unlock value but would leave an awkward European rump. Its best hope for appeasing shareholders is to spruce up margins, and improve its governance.
Elliott’s Pernod overhaul can start with wine 6 Feb 2019 The spirits maker’s wines could be worth 2 billion euros including debt. Following rival Diageo’s lead by selling lower-margin wine brands could boost Pernod Ricard’s share price. That might keep aggressive activist shareholder Elliott at bay.
Barclays’ activist investor faces moment of truth 5 Feb 2019 Edward Bramson has nominated himself to join the UK bank’s board. Barclays shares are down by a quarter since he disclosed a 5.5 pct stake; his listed vehicle has lost more. But shifting the lender’s strategy requires winning over regulators and directors as well as shareholders.
Starboard gets generous slice of Papa John’s 4 Feb 2019 The hedge fund is investing $200 mln and taking two board seats in the struggling pizza chain. The price is unambitious and it could ink a return of 6 percent annually. Turnarounds aren’t easy, and Papa John’s needs help. But Starboard is being well paid for its expertise.
Cox: Cannabis and impeachment on readers’ minds 28 Jan 2019 When asked which investment would outperform in 2019, participants at our Predictions events around the world chose Canadian weed stocks most over other assets. Most also put the chance of Congress impeaching Trump at 30 pct or higher. Consider some other surprising results.
Pernod Ricard takes baby step towards Elliott 24 Jan 2019 The French spirits maker has named a lead independent director. The increased focus on corporate governance is a welcome start and one of the demands of the activist investor. More radical changes and cost cuts will be needed to close its operating margin gap with rival Diageo.
Arconic lays bare limits of activist minority rule 22 Jan 2019 Elliott had a hand in appointing most directors, the CEO and the chairman, and encouraged a sale to Apollo. The board has nixed the deal, tanking the stock. Paul Singer’s firm tried to get its way with only a smallish stake; it now owns the company’s problems, not their solution.
Elliott puts eBay’s parts up for auction 22 Jan 2019 The $30 bln online merchant has a history of spinning off bits of itself. It has, though, missed opportunities in its core business. While the activist may persuade eBay to offload StubHub, for example, the big payoff could be selling the marketplace unit to a buyer like Walmart.
Busy activists navigate tricky currents 22 Jan 2019 They are rattling the cages of new targets like Pernod Ricard and Campbell Soup. But regular investors are more demanding, and private equity may muscle in, panellists told Breakingviews Predictions events this month. The test is whether active shareholders produce better returns.
Refocused Olympus provides a flash of hope 14 Jan 2019 As the $13 bln Japanese company turns 100, it is inviting pushy investor ValueAct onto the board, slashing costs and zooming in further on endoscopes and other medical kit. Changing the corporate culture has been a slog, though. A weak camera business also blurs the picture.