CEOs, not proxy cards, are what fuel activists 1 Sep 2022 A change to the way investors vote for U.S. company directors has kicked in, and more activism is likely. Boards facing the end of easy funding, burned-out workforces, and falling valuations are exposed. Still, gadflies' gripes will only resonate if CEOs aren’t doing their jobs.
Dan Loeb can help Disney get with the program 15 Aug 2022 The pushy hedge fund manager is back with a fresh stake in the $222 bln entertainment empire. He wants to shake up the board and is prodding boss Bob Chapek to spin off ESPN. Cutting the cord with old cable networks would help accelerate the company’s transition into streaming.
Richemont’s governance armour is hard to pierce 12 Aug 2022 Activist Bluebell wants ordinary investors to appoint their own director on the board of the $63 bln Cartier owner. Yet Chair Johann Rupert’s big voting power means he could stifle the attempt. Without a fresh voice, contrarian business ideas may not get much airtime.
Financial edits befit New York Times 11 Aug 2022 Pushy investor ValueAct has taken 7% of the $5 bln news outfit, urging it to hawk a digital bundle a la Netflix. There’s logic to the idea, which could boost the top line. Targeting a family-controlled company is risky, however, even after cracking Japan’s stubborn boardrooms.
Transportation M&A nightmare worth the trip 8 Aug 2022 Often when industries with monopolistic traits consolidate – airlines, trains - there’s a race to be an acquirer. Buyers end up paying top dollar, and regulatory concessions can be steep. Still other industries have shown the finish line is rewarding if investors stick it out.
Capital Calls: Nelson Peltz under pressure 8 Aug 2022 Concise views on global finance: A group of shareholders has replaced the chairman of a London fund managed by the legendary activist investor.
Nelson Peltz’s ego may be only winner in scrap 4 Aug 2022 Investors in a London fund managed by the agitator are trying to replace its board and wind it down. The 80-year-old might prevail in a shareholder vote, but he still faces other battles. As he’s said to other executives, sometimes a compromise is better than a distraction.
HSBC’s cross-border ties are paying dividends 1 Aug 2022 CEO Noel Quinn promised a 12% return on tangible equity and higher payouts to shareholders as the global bank rebuffed Ping An’s breakup call. Higher U.S. interest rates help, but if the Chinese insurer has spurred the $125 bln bank to raise its game, all investors will benefit.
Elliott’s Pinterest vision board has Twitter pins 15 Jul 2022 The activist has a 9% stake in the $13 bln company after investing in its rival in March 2020, then stepping back a year later. Twitter’s returns while Elliott was active outperformed competitors. A similar outcome, including a sale, is possible but without the Elon Musk circus.
Health adds new letter to ESG for food groups 12 Jul 2022 Government crackdowns on junk food marketing will hurt sales for companies like Frosties maker Kellogg. And investors are increasingly pushing consumer groups to use independent criteria to show how healthy their grub is. Tougher scrutiny will mean a valuation slap for laggards.
Japan’s activists chip away slowly but unsurely 29 Jun 2022 Toshiba adding representatives from two pushy investors to its board represents another landmark for the world’s third-biggest market. The number of campaigns is only inching up, however, and it’s mostly smaller companies being targeted. The slog involved makes progress tough.
Veteran Nelson Peltz makes rookie mistake 21 Jun 2022 The activist investor is facing a shareholder revolt at his London-listed fund. He joins other high-profile peers like Dan Loeb to get embroiled in messy spats. Whatever the appeal of raising long-term capital in public markets, sometimes it’s easier to stick to your knitting.
ESG raider needs to dig deeper 31 May 2022 Jeff Ubben’s Inclusive Capital has made a $1.9 bln offer for UK homebuilder Countryside. It’s both a bet on the need for more affordable housing, and an opportunistic raid on a target tainted by governance woes. But the ValueAct founder’s lowball bid needs a little sprucing up.
Capital Calls: Peltz bolsters Unilever’s M&A cred 31 May 2022 Concise views on global finance: The U.S. investor’s seat on the board should help CEO Alan Jope sell deals to investors.
Icahn squanders golden chance to shape McDonald’s 25 May 2022 The activist’s campaign to shake up the chain’s board with two directors over claims of the mistreatment of pregnant pigs is likely to fail. ESG issues can usher in change as Exxon can attest. But Icahn’s focus is too narrow, and McDonald’s board – and business – could use help.
St-Gobain activist hits right nails at wrong time 12 May 2022 Bluebell wants the 27 bln euro French construction group to rebuild by ditching its chairman and less profitable units. The upstart investor’s ideas have firm foundations. Its only problem is new CEO Benoit Bazin is already on the case, and the results are starting to show.
BlackRock spikes guns of green activists 10 May 2022 Larry Fink’s group will back more oil and gas production. After COP26, institutional money looked set to phase out fossil fuels, but an energy crisis has intervened. Rivals may follow the $10 trln fund giant, propping up driller valuations and complicating the green transition.
Japan bank agitator set to prove a sad point 6 May 2022 UK hedge fund Silchester wants $3 bln Bank of Kyoto and three peers to pay higher dividends using income from absurdly outsized equity stakes. It would sensibly deploy cash and put a spotlight on weak lending activities. Alas, being right in Japan is less than half the battle.
HSBC breakup, Big Oil’s surprise restraint 5 May 2022 The $129 bln bank is under pressure from its largest shareholder to spin off its Asian unit. In this Viewsroom podcast, Breakingviews columnists discuss why the plan deserves short shrift. Also, the decision by oil giants to limit production will win few friends.
SlimFast maker could be tasty swig for Nestlé 4 May 2022 An activist wants Irish protein powder seller Glanbia to break up. Listing its consumer unit in the U.S. could double its 3 bln euro value, but would take time and carries risk. That opens the door to a cash-rich buyer like the Swiss giant, which is bulking up its health lines.