Shareholder Activism

Unilever can take page from GE’s activist playbook

29 March 2017

The 139 bln-euro Magnum ice-cream owner may attract uppity investors for the same reasons Kraft Heinz came calling: low margins and relatively little debt. CEO Paul Polman could keep them at bay by aping GE and seeking an activist's advice. But he'd have to be willing to act.

Akzo activists are useful and best ignored

29 March 2017

Holders of a quarter of the Dutch paint maker’s shares think it should engage with hostile bidder PPG, claims activist fund Elliott. Yet by rushing into talks, Akzo would play a trump card too early. Appearing lukewarm, but with shareholders still keen, may lure a better offer.

GM is better off avoiding David Einhorn’s detour

28 March 2017

The hedge-fund boss wants the automaker to split its shares into one class that collects dividends and another reliant on growth. The plan, which he once pitched to Apple, underestimates GM's cyclical and tech challenges. With bailout memories vivid, it's wise to steer clear.

Disney gives Paris investors a Scrooge McDuck exit

27 March 2017

The maker of "Mickey's Christmas Carol" wants to buy out shareholders in its Paris theme park at a premium. Yet the price downplays Euro Disney’s profitability and real estate. This is poor compensation for a rollercoaster investment with more down than up.

Sleepy German investors get Bosnian alarm call

15 March 2017

An activist investor owning just 20 pct of auto supplier Grammer may win de facto control over the 626 mln euro company without paying a premium. The reason isn’t a kink in German rules, but the complacency of shareholders who rarely show up to annual meetings.

Board diversity is good use of passive voice

7 March 2017

Women in the boardroom can improve performance, but U.S. companies have been slow to adapt. State Street, where three of 11 directors are female, is threatening proxy fights if companies don't widen their gender horizons. It's a smart way for quieter fund managers to get pushy.

Luxury mall fight is small sign of what’s in store

3 March 2017

An aggressive investor wants to add new directors at $4.2 bln shopping-center operator Taubman. U.S. malls are in for a world of hurt as tenants collapse financially. Even upscale owners like Taubman need a push, but there are more vulnerable targets. And the fixes aren't easy.

Fund cannibalism is a chewy meal for activists

27 February 2017

Asset manager GAM has been urged to shake up its board by an activist fund. The Swiss group’s performance and governance make it vulnerable, but fund managers are tricky targets: the industry's fee structure is challenged, costs are high, and regulators demanding.

Activist applies some Italian polish to Tiffany’s

21 February 2017

With a long slump threatening to tarnish its brand, the luxury jeweler is embracing new blood. Barry Rosenstein's Jana Partners has teamed up with former Bulgari boss Francesco Trapani to nab a stake and three board seats. They need to move quickly to restore the group's luster.

Nelson Peltz picks good time to scrub P&G

15 February 2017

The $230 bln Tide-to-Crest conglomerate was improving steadily even before the pushy investor came calling. While Gillette faces bigger threats, Peltz's proposals for P&G are a mystery for now. Either way, consumer stocks are well positioned for a tougher economic environment.

Turning table on activist runs $10 bln risk at CSX

15 February 2017

The railroad quickly acceded to Mantle Ridge's idea to install Hunter Harrison as CEO. Now it's balking at the fund's outsized demands for pay and board seats. Drawing the line on comp and giving shareholders a say is laudable, but a long fight threatens CSX's big market gains.

Viewsroom: The cost of jingoism

2 February 2017

President Trump's trade-tariff threats and his temporary immigration ban risk undermining business-friendly policies like deregulation and tax cuts. Meanwhile, he has nominated a Supreme Court justice. And Under Armour takes center stage in the battle for shareholder rights.

Insurgency is logical byproduct of Alcoa spinoff

1 February 2017

Alcoa coped with an irrational aluminum market by plowing capital into expensive acquisitions. Management hoped a separation would attract investor attention to its Arconic parts business, and provide a cozy escape hatch. It got what it wanted – but in the form of a proxy fight.

Avis steers wrong way to avoid investor hazard

24 January 2017

The $3.2 bln rental-car outfit adopted a poison pill after its biggest shareholder refused to renew a standstill agreement. Avis worries big buybacks will give hedge fund SRS creeping control without paying a premium. A simpler, fairer solution would be to pay dividends instead.

Italy is a flytrap for activist investors

19 January 2017

The euro zone's third-biggest economy offers some ideal conditions for shareholder activism – and some great reasons to stay away. A fight between Elliott Management and railway-signal maker Ansaldo STS shows plenty of both.

Starboard takes tricky tack with Rockwell deal

1 December 2016

The activist wants the aircraft-parts maker to consider ditching a $6.4 bln tie-up with B/E Aerospace. Grounding the merger has merit, but Carl Icahn and others have had mixed results agitating against M&A. A Trump-inspired rally in Rockwell's stock complicates Starboard's case.

Consultant Cognizant gets some useful free advice

28 November 2016

Pushy hedge fund Elliott wants the $35 bln IT services provider to buy back stock and pay a dividend. As Cognizant's revenue has grown over 100-fold since 1999, its margins have been curiously stable. Focusing more on efficiency and returning capital to investors are good tips.

Chinese insurer’s board battle could backfire

23 November 2016

The mass resignation of CSG's management team after a hostile takeover by activist conglomerate Baoneng Group puts the profitable firm's fate in limbo. If Baoneng wants to prove itself as a strategic investor, it should look before leaping into boardroom battles.

Detractors give central bankers too much credit

26 August 2016

Federal Reserve Chair Janet Yellen and other rate-setters stand accused of pursuing policies that only help the rich. Yet the supposed beneficiaries complain that loose money depresses returns and distorts markets. Both sides overestimate central banks’ control over the economy.

China’s big banks enjoy calm before the storm

26 August 2016

Net profits at CCB and BoCom are stable, as are bad-loan ratios: a pleasant surprise given the wider backdrop. This partly reflects a growing gulf in asset quality between large banks and their smaller peers. The giants are probably also putting off recognising bad debts.