Nestlé is behind in consumer goods bake-off 27 Jul 2017 In a slow sales environment, global food giants need a new growth recipe. Danone and Unilever are both buying higher-growth companies and using fashionable cost cutting philosophies to improve profitability. Bigger rival Nestlé is trying too, but less convincingly.
Barnes & Noble sale has plot logic but no ending 25 Jul 2017 An activist wants the $560 mln U.S. bookstore chain to go private. That makes sense for a fading business that needs work. The problem is finding a buyer on the other end. Amazon’s Whole Foods deal has everyone thinking. But Barnes & Noble may be nowhere on Jeff Bezos’ list.
Akzo’s misguided strategy will weather CEO change 19 Jul 2017 The Dutch paint maker’s new boss Thierry Vanlancker inherits his predecessor’s fanciful mid-term targets. The goals are backed by Chairman Antony Burgmans, a key opponent of a deal with PPG who may now find his position strengthened. Real change at Akzo is even less likely.
Peltz goes for the close shave at Procter & Gamble 17 Jul 2017 Unlike his last proxy fight at DuPont, the activist is taking a more surgical approach, lobbying for one board seat at the $223 bln razors-to-detergent conglomerate. Trian is also supporting management and not calling for a breakup. Shareholders would be daft to turn him down.
Elliott renews totemic siege of Dutch boardrooms 7 Jul 2017 The U.S. hedge fund has launched a new legal bid to dismiss Akzo Nobel chair Antony Burgmans. The move may not revive the Dutch group’s sale to PPG that Elliott wants. Yet after defeat in a separate case, it shows activist investors haven’t given up on the Netherlands just yet.
Danone could be next serving for hungry activists 5 Jul 2017 Low margins and poor investor returns mean the French maker of Activia yoghurt is a logical target. While an earlier campaign by U.S. activist Nelson Peltz had modest success, Third Point’s new stake in Nestlé and President Macron’s pro-business agenda argue for a fresh look.
Stonyfield deal whipped up by U.S. yogurt frenzy 3 Jul 2017 France's Lactalis is paying 20 times EBITDA for Danone's yogurt brand, or $875 mln. While American demand has propelled upstarts like Chobani to multibillion-dollar valuations, growth has slowed. It may be hard for the old-school label to woo new consumers.
Nestlé can ignore all Dan Loeb’s ideas bar one 3 Jul 2017 Of the four demands activist Third Point put to the Swiss giant’s board, just one is worth pursuing. Share buybacks, selling divisions and a sale of Nestlé’s L’Oreal stake wouldn’t obviously juice up the share price. Old-fashioned margin improvement holds the most promise.
UGGs could be cozy fit for buyout barons 28 Jun 2017 A pushy investor in $2.2 bln Deckers, owner of the trendy sheepskin-lined boots, issued an odd ultimatum to the board: sell the company or face a fight at the ballot. The numbers may stack up for private equity. It's a question of whether valuation and retail risk are too high.
Nestlé serves up only semi-sweet buyback 27 Jun 2017 Days after being put on the spot by Dan Loeb, the Kit Kat maker said it would repurchase up to $21 bln of shares over three years. It's an incremental step, like a review of the U.S. candy arm. Ignoring bigger issues, however, could allow the activist to marshal more support.
Nestle gives Dan Loeb an Alpine peak to climb 26 Jun 2017 The pushy billionaire has set his sights on the Swiss Alpo-to-Perrier producer. Consumer groups such as P&G and Pepsi have proven tough activist targets. Loeb clearly likes a challenge, having recently agitated in lethargic Japan. And $263 bln Nestle may be a movable mountain.
Upscale U.S. mall owner’s win warrants a discount 6 Jun 2017 Chairman Robert Taubman survived a shareholder insurgence after his Taubman Centers agreed to force directors to face a vote every year. The late concession seemed to sway big funds – for now. Given industry woes and investor ire, the $3.5 bln company didn't buy itself much time.
GM speeds away from Einhorn toward nastier traffic 6 Jun 2017 More than 90 pct of shareholders rejected the hedge-fund manager’s stock-split proposal. That removes a distraction for CEO Mary Barra. But GM’s stock is flatlining, U.S. car sales are sluggish and the competition for connected and self-driving cars is just getting on the road.
Akzo is emblem for new “fortress Europe” 1 Jun 2017 The Dutch maker of Dulux paint thwarted a generous 25 bln euro takeover attempt from U.S. rival PPG without putting forward a convincing financial defence. As European governments reach for more power to fend off unwanted mergers, Akzo has shown how shareholders can lose out.
Shareholders are best judges of PPG’s Akzo bid 30 May 2017 A Dutch court threw out activist Elliott’s attempt to force talks between the paint maker and U.S. suitor PPG. That still leaves the other option: for PPG to appeal directly to shareholders. The 25 bln euro price looks attractive, and there is little downside in going hostile.
Elliott’s hard work is just starting at Arconic 22 May 2017 The activist fund’s deal ending its bitter fight with the car- and plane-parts maker strengthens its grip on the board. It also puts one of its picks into the ring to be CEO. That shifts Elliott’s role from attacking poor results and governance to showing it can improve them.
Elliott turns activist hose on burning Bush 18 May 2017 Medical-software firm Athenahealth trades at a big discount to rivals after expanding poorly and often missing estimates. Elliott’s 9 pct stake in the $5 bln company should allow it to douse colorful and erratic founder Jonathan Bush’s role as boss or force an outright sale.
ValueAct practices what it preaches on succession 16 May 2017 The $16 bln hedge fund has made governance a signature issue in its activist approach. In handing over investing duties to longtime deputy Mason Morfit, founder Jeffrey Ubben is showing he can walk the walk. Other hedgies who hold on too long might learn from this example.
BHP should take Elliott’s activism as a compliment 16 May 2017 The fund has renewed its call for the miner to break up. BHP isn’t the only one with portfolio clash – rivals Rio Tinto, Anglo American and Glencore all have bits that don’t fit. But BHP’s oil business is well suited to a spinoff. Resistance makes it look more desirable.
Whole Foods board changes whet activists’ appetite 10 May 2017 The $12 bln organic-food purveyor is replacing more than half of its board, a step to appease Jana Partners. But the fund, with 8 percent of shares, wants a sale, and others are pounding the table. As long as Whole Foods same-store sales keep declining, they’ll stay hungry.