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.
GM is better off avoiding David Einhorn’s detour 28 Mar 2017 The hedge-fund boss wants the automaker to split its shares into one class that collects dividends and another reliant on growth. The plan, which he once pitched to Apple, underestimates GM's cyclical and tech challenges. With bailout memories vivid, it's wise to steer clear.
Disney gives Paris investors a Scrooge McDuck exit 27 Mar 2017 The maker of "Mickey's Christmas Carol" wants to buy out shareholders in its Paris theme park at a premium. Yet the price downplays Euro Disney’s profitability and real estate. This is poor compensation for a rollercoaster investment with more down than up.
Sleepy German investors get Bosnian alarm call 15 Mar 2017 An activist investor owning just 20 pct of auto supplier Grammer may win de facto control over the 626 mln euro company without paying a premium. The reason isn’t a kink in German rules, but the complacency of shareholders who rarely show up to annual meetings.
Board diversity is good use of passive voice 7 Mar 2017 Women in the boardroom can improve performance, but U.S. companies have been slow to adapt. State Street, where three of 11 directors are female, is threatening proxy fights if companies don't widen their gender horizons. It's a smart way for quieter fund managers to get pushy.