Dollar Tree proves money doesn’t grow on mergers 17 Oct 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 Oct 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 Oct 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 Oct 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 Oct 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 Oct 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 Sep 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 Sep 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 Sep 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.
Elliott flexes its two biggest muscles at Sempra 18 Sep 2018 The $32 bln utility agreed to add two new board members and says it will review a break-up. Meanwhile, Elliott’s lawyers won back a $275 mln fee from when Sempra bought Texas utility Oncor. Paul Singer’s fund specializes in persuasion and litigation. This time, both paid off.
Loeb needs Campbell Soup to taste more like Heinz 11 Sep 2018 The activist is trying to replace the board at the indebted $12 bln food group. He’s backing off demands for a sale, though. That leaves improving lackluster margins. Success could bring an investment win, but it’s a grind more suited to Kraft Heinz backers 3G Capital.
Elliott’s new Hyundai push will be hard to ignore 7 Sep 2018 The U.S. hedge fund has called out a lack of progress in the South Korean conglomerate's overhaul. That looks justified: it has yet to come back after investors nixed a $9 bln plan in May. As regulators step up pressure to reform, Hyundai may not be able to stall much longer.
Vivendi gives Elliott a taste of activist medicine 6 Sep 2018 Telecom Italia is turning into the U.S. fund’s worst big investment in Europe. Vivendi, which used to run the telco and is its biggest investor, blames Elliott’s boardroom overhaul for the share price slump. Such squabbles distract from the problem of competition from new rivals.
Campbell lukewarm sale pitch is begging for a cook 30 Aug 2018 The $12 bln soup and snack company plans to sell its fresh and international food brands, and step up cost cuts on stagnant core brands. It’s leaving the door open for a sale, but that’s unlikely to appease activists like Dan Loeb. A focused auction would be a better approach.
Trump adds new impetus to old short-termism debate 17 Aug 2018 The U.S. president wants the SEC to examine letting public companies report earnings every six months, rather than quarterly. Plenty of others, like BlackRock’s Larry Fink, had already slammed the practice. Trump’s tweeted directive should prompt some useful independent analysis.
Icahn got it half right with Cigna battle 14 Aug 2018 The activist investor has backed away from his fight against the U.S. health insurer's $52 bln deal to buy Express Scripts. On merit alone, his opposition was justified. But for activists, that is no longer enough to win. Shifting shareholder rosters have changed the game.
Icahn’s late start blunts Cigna blocking campaign 7 Aug 2018 The activist makes a good case for rejecting the insurer’s $52 bln Express Scripts deal. Yet his argument - Cigna is paying too much for a target threatened by regulation and Amazon - was evident months ago. And the window for enlisting other arbs to his side has already closed.
Icahn dusts off early playbook chapter with Cigna 2 Aug 2018 Company launches bad deal. Stock falls. Activist buys, shorts target, lobbies to unwind deal. Buyer stock goes up, seller plunges. Investor rejoices. Icahn did it with Mylan – and now he can repeat with Cigna’s value-destructive Express Scripts purchase. Plus ça change.
Hammerson tinkering reflects strategic impasse 24 Jul 2018 The UK landlord needed to atone for an Intu deal U-turn and its spurning of a Klepierre merger. A buyback and flogging 1.1 bln pounds of assets doesn’t quite do so. The problem is that even at their lowly valuation selling more UK assets looks hard to do.
Premier Foods CEO heave looks like M&A appetiser 10 Jul 2018 Activist Oasis has upped its stake in the maker of OXO cubes to oust boss Gavin Darby. Its plan to sell Batchelors soup could cut borrowing and loosen top investor Nissin’s grip, making the rest a takeover target. It’s a more appealing prospect than low growth and high debt.