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.
UK shareholder battle upsets activist conventions 9 Jul 2018 Unhappy investors typically push for CEOs to step down. At infrastructure firm Stobart, fund manager Neil Woodford tried to get the chairman sacked. Iain Ferguson narrowly survived with help from rival Invesco. But the brawl puts little faith in investors guiding quiet change.
Dan Loeb hits limits of “constructivism” on Nestlé 2 Jul 2018 A year after disclosing a stake, the activist investor called on the Swiss giant to shake up its business and board. Though his ideas make sense, progress has been slow and the stock has lagged. He could take a more muscular approach, but only if other shareholders go along.
Premier Foods’ Japanese flavour has turned stale 28 Jun 2018 Top shareholder Nissin’s stake in the Mr Kipling maker has fared poorly, but a beneficial commercial deal ensures its support. With activist Oasis pushing for CEO Gavin Darby’s ouster, it’s time for the Tokyo-based company to start thinking like an investor.
Activism and stubbornness collide at SandRidge 18 Jun 2018 Carl Icahn’s fight with the $550 million oil driller will dominate its annual meeting this week. Neither has a straightforward plan for ending shareholders’ misery. Meanwhile a takeover by rival Midstates could slip away. The priority should be to get that deal off the ground.
Renault M&A race sidelines governance niceties 15 Jun 2018 Investors backed CEO Carlos Ghosn’s pay despite the French state’s opposition. His 7.4 million euro package was greased with soft targets. Yet the high proportion of shares at least gives Ghosn an extra incentive to push for a value-boosting merger with Japan’s Nissan.
Elliott didn’t get into activism to make friends 11 Jun 2018 Paul Singer’s hedge fund wants board seats at $31 bln utility Sempra, and has accused it of over-expanding. Presumably that includes the Oncor deal Elliott itself backed last year. Singer is arguably helping Sempra again, though the target’s board may not feel that way.
Athenahealth moves from trauma to cure 6 Jun 2018 The underperforming healthcare-software firm has removed CEO Jonathan Bush shortly after he admitted hitting his ex-wife. The company is looking for a replacement, but a stalking-horse bid from activist Elliott Management could lead to a sale. Either could address what ails it.
Facebook’s top two get a muddled message 5 Jun 2018 Most independent shareholders elected to nix the social network’s super voting rights. Yet they voiced approval for Mark Zuckerberg and Sheryl Sandberg. The strong showing for the boss and COO undercuts the argument to scrap the structure that keeps them entrenched.
Shareholder climate activism needs more heat 5 Jun 2018 Owners of companies from Exxon to Rite Aid are asking for more disclosure on sustainability. That’s important, but insufficient. Ensuring bosses take climate goals seriously requires an informed board – and exec pay tied to green goals. These are what investors should target.
Tesla shareholders box themselves into corner 5 Jun 2018 They ought to strip CEO Elon Musk of the chairmanship thanks to his sprawling responsibilities, production problems and recent outbursts. But investors helped make Tesla a personality-cult stock. Any direct attack on Musk risks undermining the electric-car maker’s fortunes.
CEO exit takes Samsonite rebuttal only so far 1 Jun 2018 The $5 bln luggage-maker parted ways with its boss after a short-seller revealed he didn’t hold a doctorate despite sometimes being called “Dr”. Samsonite’s efforts to knock down other accounting and governance allegations could take longer after it lost the benefit of the doubt.
Toshiba has reasons to cling to its cash pile 1 Jun 2018 The scandal-hit Japanese group is poised to finally sell out of memory chips. Having also raised money from hedge funds, Toshiba will have $10 bln of net cash. Yet hurdles to distributing dividends and big transformation plans make large payouts to investors a distant prospect.
Greyhound owner’s turnaround faces lengthy delay 31 May 2018 Bus and rail operator FirstGroup’s CEO resigned and its shares fell after it reported a loss, due to competition from low-cost airlines. It can cut costs and sell assets, but tough markets and management upheaval don’t help. A sale looks easier, but may not deliver a good price.
China script flipped at hedge fund idea-fest 31 May 2018 A relaxing approach to the country’s debt and infrastructure projects was reflected at Sohn Hong Kong, where Guangzhou’s airport and mainland stocks broadly were touted as buying opportunities. Scepticism about tech titans Tencent and JD suggests another shift could be underway.
Exxon shareholders dutifully take back seat 30 May 2018 One year after rebuking management over climate change, owners of the $330 bln oil giant turned quiescent. They toed the company line on pay, lobbying and splitting the chairman and CEO roles. If returns remain subpar, investors will have no one but themselves to blame.
Bad-boss risk rises for activist and target alike 29 May 2018 An investor who took aim at a REIT chief accused of sexual misconduct is now fighting claims against himself. Such allegations are harder to contain for companies, which usually face more scrutiny than hedge funds. The asymmetry has limits though, especially if fund returns fall.