ValueAct loses its temper in 7-Eleven 10 May 2023 Boss Mason Morfit prefers to chide undervalued conglomerates behind closed doors. But Seven & i has so provoked him, his firm is publicly calling for chief Ryuichi Isaka’s head. ValueAct has a good case, so the looming showdown will test how rude activists can get in Japan.
Buffett’s imprint on Berkshire reaches its limit 8 May 2023 The billionaire again made clear that energy lieutenant Greg Abel will someday be the company’s next CEO. By bequeathing his stock to the Bill and Melinda Gates Foundation and others, Buffett has outlined ownership succession too. Even those best-laid plans leave notable holes.
It’s time HSBC’s top owner calms down or sells up 4 May 2023 Ping An’s fight for a rejig is going nowhere, more so after the $150 bln lender’s bumper profit. Continuing risks hurting the Chinese insurer, HSBC and maybe even Hong Kong. Better to peacefully reap the benefits of boss Noel Quinn’s overhaul - and rejoin the fray if he falters.
Icahn may fall short in quest of the holy Grail 21 Apr 2023 New rules in proxy contests haven’t helped activists in Disney or Salesforce. But with a concentrated shareholder base, they may embolden Carl Icahn as he agitates at Illumina, in the process of buying cancer detector Grail. The trouble is Icahn is pushing beyond the attainable.
Cellnex could use an outsider with a sharp knife 30 Mar 2023 Hedge fund TCI has accused the Spanish tower operator of “mishandling” an ongoing CEO search. Once an M&A machine, the $27 bln firm needs to cut its debt load markedly. That requires a new boss with a fresh perspective, not an insider.
CEO nostalgia won’t bring back the alpha 29 Mar 2023 Activist Carl Icahn wants Illumina’s Jay Flatley back at the helm of the US biotech firm. He’d be joining the zeitgeist: UBS and Disney have both reinstalled former CEOs too. Competence has value, but past performance doesn’t guarantee greatness. Long tenure brings its own risks.
Xavier Niel can feast on European telco misery 27 Mar 2023 The French tycoon has assembled a privately owned telecoms empire worth about $33 bln, Breakingviews calculates. Behind the scenes he’s manoeuvring to further spread his wings. Purchases of stakes in Vodafone and Luxembourg-based Millicom signal the scale of his ambition.
Salesforce is stuck with its pricey acquisitions 20 Mar 2023 Pushy investors persuaded the business software developer to cut back on M&A, but undoing past deals would be tougher. Offloading $28 bln Slack, $16 bln Tableau or $7 bln MuleSoft looks to be more trouble than it’s worth. Integrating them is a better, albeit slower, approach.
Big Oil’s old profligacy lives on Down Under 15 Mar 2023 Chevron, Shell and others are ploughing some Ukraine-related windfall earnings into new projects, but sharing the lucre with shareholders too. Australia’s Santos is being stingier, with governance and climate concerns to boot. Its lagging stock is dry powder for activists.
Icahn reacts audaciously to Illumina’s audacity 14 Mar 2023 The mouthy billionaire wants three board seats at the $36 bln biotech company and for it to spin off Grail. Boss Francis deSouza overpaid to buy back the cancer detection business and took on too much regulatory risk. Some oversight is warranted, but a 1% stake only buys so much.
Capital Calls: Carlsberg CEO exit 7 Mar 2023 Concise views on global finance: Asia will be a key battleground for the $21 bln Danish brewer’s next boss.
Adani contrarian is a win for Hindenburg, too 3 Mar 2023 GQG’s $1.9 bln investment is a fillip for the tycoon. But shares of his firms are close to the short-seller’s target. And a court has ordered India’s securities watchdog to probe its allegations. Even if cleared, Adani may struggle to secure the backing of mainstream financiers.
Spotify’s next act: hosting ad lollapalooza 24 Feb 2023 The music service attracted activist ValueAct as founder Daniel Ek starts to whack costs. Yet rather than cutting its way to profit, Spotify could stem its losses by nabbing a quarter of the streaming and podcasting ad pie. It’s a tough but plausible performance to pull off.
Scrap-car deal battle is a heaping mess 23 Feb 2023 Ritchie Bros’ $7 bln deal for salvage-yard operator IAA has seen dueling activists, wild synergy projections, and a big hit to the buyer’s stock. The deal’s value looks slim unless optimistic promises pan out – the problem is, they include gains investors can get on their own.
TCI’s Airbus fury may have collateral benefit 22 Feb 2023 Hedgie Chris Hohn says the plane maker’s plan to buy a 30% stake in Atos’s cyber arm will destroy value. He’s probably right, but private investors take a back seat in defence deals, where governments call the shots. His salvo might however help Airbus drive a harder bargain.
Disney clash with activist Peltz will have sequel 16 Feb 2023 While the $200 billion media company’s new cost-cut program persuaded cage-rattler Nelson Peltz to call off his bid for a board seat, there’s much more to do. If his previous campaigns at P&G and DuPont are a guide, what looks like a harmonious ending may only be an intermission.
Microsoft can answer antitrust “Call of Duty” 13 Feb 2023 UK regulators say selling the video game would ease their concerns over the software giant’s $69 bln purchase of Activision Blizzard. A disposal would be chunky, and boss Satya Nadella won’t want to leave it behind. But even without the franchise, the acquisition still stacks up.
KKR can limit the pain of Elliott’s telco blitz 13 Feb 2023 The activist is disrupting the buyout group’s bid for German phone masts firm Vantage Towers. With a 5.6% stake, Paul Singer’s fund is expected to block the delisting until it gets a big payout. But unlike previous Elliott campaigns, KKR has various ways to insulate itself.
Gautam Adani’s woes were in banks’ plain sight 8 Feb 2023 Barclays, Standard Chartered, Deutsche Bank and others helped the Indian tycoon supersize his empire. A $110 bln share rout exposes their willingness to ignore warnings and take a narrow view of risk on lucrative relationships. As Adani struggles, the questions will get louder.
Japan activists seek smaller fish to fry 7 Feb 2023 With the Toshiba campaign stuck in the mud, some investors are eying easier prey. Elliott Management is angling for $6 bln Dai Nippon Printing; Oasis is after a $2 bln elevator maker. If these less ambitious campaigns don’t pay off, it’ll send gadflies back to the drawing board.