Indispensable execs demand higher disclosure 18 Dec 2017 CSX’s turnaround expert Hunter Harrison is dead months after joining the railroad. A rich signing package and $10 bln added to the firm’s market worth showed his importance. If companies and markets think and act as if leaders are irreplaceable, key-man risks must be disclosed.
CSX chief’s illness puts its recovery on crutches 15 Dec 2017 The railroad hired 73-year-old Hunter Harrison in a revival effort earlier this year. Less than a year into his four-year contract, he’s on medical leave. Valuations and big pay packages pinned on aging executives call for an actuarial discount.
Deckers’ proxy win is a loss for shareholders 14 Dec 2017 The UGGs bootmaker defeated activist Marcato’s bid for board seats, but a falling share price leaves no time to celebrate. As with P&G, the argument for outside ideas and talent was compelling. With that path closed, investors will be impatient for steps to revive a tired brand.
Fortum’s Uniper bid has bigger issues than Elliott 13 Dec 2017 Hedge funds including Paul Singer’s group want the Finnish energy company to pay more for its German peer. Appeasing them would weaken Fortum’s rationale for buying fossil fuel-heavy Uniper. The shift to clean energy and the lapse of generous Russian subsidies may destroy it.
Xerox’s paper jam may be beyond even Icahn 11 Dec 2017 Activist Carl Icahn’s representative is leaving the board of the $7.5 bln copier company. He plans to nominate a new slate. Though his gripe is unclear, printers are having a tough time in a digital world. Short of a sale, small quibbles won’t do much.
Elliott tries curing $25 bln biotech’s independence 8 Dec 2017 Alexion prospered selling niche drugs at stratospheric prices, until hit by a botched deal, sales improprieties and a thin pipeline. Replacing its CEO hasn’t helped and the stock is nearly half its peak. The activist’s push to shape up or sell is just what the doctor ordered.
Elliott’s usual playbook is unsuited to Uniper 6 Dec 2017 Paul Singer’s activist fund has a 5.3 percent stake in the German energy group that is being targeted by Finland’s Fortum. Unusually, the buyer may be willing to live with less than full ownership for a while. That could reduce the scope for Elliott to hold the bidder to ransom.
Icahn knows a playbook to avoid with SandRidge 4 Dec 2017 As the governance-challenged driller did last week, CVR Energy tried to fend off the activist with a poison pill back in 2012. Icahn ended up bidding for the refiner and still owns 82 pct of it. It’s an experience neither he nor other shareholders will relish repeating.
LSE boardroom ceasefire is least bad outcome 29 Nov 2017 CEO Xavier Rolet is leaving the London Stock Exchange immediately, ending an activist campaign for him to stay on. Chairman Donald Brydon will step down in 2019. The compromise averts a longer and more damaging public row. But nobody emerges from the saga with much credit.
Fred Goodwin’s ghost haunts LSE board fight 28 Nov 2017 In 2007 the forceful RBS boss led his bank into a disastrous deal, encouraged by Chris Hohn. The activist investor is now backing London bourse CEO Xavier Rolet against the company’s directors. Hohn’s call for Bank of England support has backfired. Goodwin may help explain why.
Deckers takes on activist with two left feet 27 Nov 2017 The UGGs bootmaker promises to appoint two new directors next year. It’s a weak attempt to dance away from Marcato’s campaign to replace all nine board members next month. The pushy investor’s role has boosted the stock by 63 pct. Deckers’ leaders may fall flat on their faces.
Oil patch can use Icahn’s tough love 27 Nov 2017 The activist joined another angry investor to stop oil driller SandRidge's $746 mln acquisition of rival Bonanza. SandRidge adopted a poison pill to block him. It is an egregious example of oil companies chasing size at shareholders’ expense. On principle, it’s worth the battle.
Jana’s Outback bet beats a walk in the Olive Garden 24 Nov 2017 The activist has taken a 9 pct stake in the Aussie steakhouse’s owner. Cheap grocery prices and the rise of delivery apps have battered such restaurants. It took a wholesale revamp by investor Starboard to turn Olive Garden around. Jana, though, may be targeting easier pickings.
Clariant and activist lack a positive reaction 24 Nov 2017 The Swiss chemical maker will devise a new strategy after its merger with rival Huntsman flopped. It rejected demands from White Tale to explore a breakup. Clariant cannot ignore its 20 pct shareholder, but the activist that scuppered the deal needs to propose as well as oppose.
P&G’s battle with Peltz is practically poetic 22 Nov 2017 The consumer giant fights on with Peltz, backed by hubris and nothing much else. Insularity remains, causing new corporate stains - as the activist readies fresh welts.
Akzo’s no-deal still worse than a good deal 22 Nov 2017 The Dutch paint maker is temporarily solo after talks with U.S. peer Axalta foundered. That combination, good on paper, was challenged by the two companies’ uneven size and likely job cuts. Even so, Akzo’s future if it’s determined to remain single is unappealing.
Activist lays multiple chips on silicon strategy 21 Nov 2017 In its latest semiconductor play, activist Starboard is seeking to push Israel’s Mellanox into a deal. It also owns a chunk of Marvell, a potential buyer whose prior approach was rebuffed. With technology and economics driving rapid consolidation, it makes sense to spread bets.
LSE boardroom brawl will produce only losers 20 Nov 2017 Activist TCI wants to oust bourse Chairman Donald Brydon and reverse the departure of CEO Xavier Rolet. The board is preparing a public explanation for Rolet’s exit, perhaps including salty details. Directors, executives, shareholders and the exchange itself will all look bad.
Vivendi doubles down on video-game mystery 17 Nov 2017 The French media group won’t buy the rest of Ubisoft in the next six months, but nor has it said it will sell its 27 pct stake. It may even forgo voting rights to avoid making a bid. That leaves investors guessing as to its long-term plan, and marking down the stock accordingly.
Sandell asks Barnes & Noble to pick an adventure 16 Nov 2017 Flip to chapter “flimsy proposal” to see the activist try a buyout of the struggling bookstore chain without financing. Turn to chapter “worse than before” to trade liquid stock for private shares without founder backing. Stay here if you don’t want to see how this story ends.