Shareholder Activism

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.

Shareholder battle weakens Akzo’s standalone case

9 May 2017

Activist investor Elliott is taking the Dutch paint maker to court in an attempt to oust chairman Antony Burgmans. Akzo’s defence against suitor PPG rests on its stock trading on a higher multiple after a corporate rejig. But bad governance could cancel out any upside.

Dan Loeb’s Honeywell spin goes too far

5 May 2017

Hiving off the $100 bln conglomerate’s aerospace unit could boost the stock. But the activist’s argument that it would increase shareholder value by a fifth is a stretch and ignores the benefits the unit brings to Honeywell. New CEO Darius Adamczyk has other levers to pull first.

Arconic board shoves head back in the sand

4 May 2017

Firing CEO Klaus Kleinfeld gave hope directors might embrace bigger strategic changes to improve results. Now they’re contending the former boss had it right and that two new board nominations should be change enough. Its argument, like the outfit’s performance, is poor.

Credit Suisse bonus vote exposes two problems

28 Apr 2017

Two-fifths of shareholders at the bank’s AGM rejected its short-term bonuses. Yet 91 pct approved the reappointment of Chairman Urs Rohner. Credit Suisse lacks two things a good company needs: a chair who holds the CEO to account, and investors who kick up a fuss if he doesn’t.

Henry Kravis finds polite barbarian at his gate

27 Apr 2017

ValueAct disclosed a nearly 5 pct interest in KKR. Jeff Ubben's firm is usually friendlier than many activists and sounds positive on the buyout shop's prospects. Private-equity stocks have lagged bullish valuation hopes, though, and that could lead to a push for bigger changes.

Mondelez is a heavy snack even for 3G and Buffett

24 Apr 2017

The maker of Oreo cookies and Cadbury chocolates has long whet the appetite of Kraft Heinz. Now Mondelez’s hunt for a CEO offers an opening to the firm backed by 3G Capital and Berkshire Hathaway. Yet even the famed cost-cutters could get stuffed by the target’s rich valuation.

PPG raised offer kicks hole in Akzo’s door

24 Apr 2017

With a 50 pct premium, guarantees for European workers and a big break fee, the U.S. paint maker’s third approach for its Dutch rival leaves CEO Ton Buechner no choice but to engage. The onus would then be on PPG to explain how this rich 24.6 bln euro deal makes financial sense.

Activist in Japan ups the ante and gets results

24 Apr 2017

Hong Kong hedge fund Oasis forced Panasonic to change tack and sweeten its offer for the rest of subsidiary PanaHome. Floating its own counterbid made the difference. But the new $839 mln cash offer is still far from a knockout. There could be more moves and countermoves ahead.

Cox: Ugly global paint battle drips with irony

20 Apr 2017

PPG's $24 bln hostile bid for Akzo Nobel has devolved into a colorful war of words and investor presentations. Both sides are hypocritically seeing red over defensive tactics and strategic steps each has used itself. Strip it down, though, and the only hue that matters is green.

Akzo’s go-it-alone plan has a rose-tinted hue

19 Apr 2017

The besieged maker of Dulux paint is wooing investors by breaking itself up and becoming more profitable. On paper, the strategy is superior to merging with U.S. rival PPG. In reality, lifting margins by a quarter until 2020, while cutting fewer jobs, looks a stretch.

Activism prods GAM in right direction

18 Apr 2017

The Swiss hedge fund group will review compensation and cap its CEO’s pay because of pressure from investor RBR. The activist’s more disruptive plans may not win backing from other investors. But it can claim credit for forcing change in an industry resistant to shakeups.

Active boards needn’t fear activist investors

12 Apr 2017

Dulux paint maker Akzo Nobel wants to stymie a vote on whether its chairman should go, after he rebuffed a $24 bln bid from rival PPG. That makes it look like the company is trying to stifle debate. While activists can overplay their hand, good managers still have the advantage.

BHP’s oil jewel has value even without breakup

12 Apr 2017

The mining giant is under activist pressure to spin off its petroleum business. That would deliver little value for shareholders, a sum-of-the-parts valuation suggests. BHP chief Andrew Mackenzie could do worse, though, than show he is open to a bid at a healthy premium.

Bollore kicks down unlocked door at Telecom Italia

11 Apr 2017

French raider and Vivendi Chairman Vincent Bollore will soon nominate the majority of the telco’s board with only a minority stake. Governance purists could snarl at potential conflicts. Still, resistance has so far been weak, and Bollore’s influence has not been a bad thing.

BHP Billiton activist’s plan has some merits

10 Apr 2017

Hedge fund Elliott wants the mining giant to clean up its Anglo-Australian structure, buy back shares and split off its oil business, saying shareholders could be roughly 50 pct better off. Even if a full breakup looks a stretch, this may nudge BHP into helpful spring cleaning.

BP’s bonus rethink is still kind to Bob Dudley

6 Apr 2017

The British oil major has caved to shareholder pressure and cut 2016 pay for its chief executive by 40 pct. Dudley has cleaned up BP since the Gulf of Mexico spill. But his latest long-term incentive plan still positions him comfortably ahead of his domestic peer group.

Unilever can take page from GE’s activist playbook

29 Mar 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 Mar 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.