Breakup opposition will smoke out AGL’s C-suite 3 May 2022 A lacklustre plan to split coal power from the retail business is sputtering after Atlassian co-CEO Mike Cannon-Brookes grabbed an 11% stake and vowed to vote no. It leaves boss Graeme Hunt and his team vulnerable. Their exit would open the door to a fresh takeover approach.
Italy’s financial order repels attack on Generali 29 Apr 2022 Mediobanca-backed CEO Philippe Donnet overcame opposition from investors with 30% of the $30 bln insurer to win a third term. That preserves a key financial link with the merchant bank. Donnet now has to deliver on his growth plan. The rebel investors will keep him on his toes.
Capital Calls: Amazon and consumers 29 Apr 2022 Concise views on global finance: People are spending more amid price hikes, while the e-commerce giant struggles with them.
How to return control of companies to their owners 28 Apr 2022 Investors used to argue that companies exist to maximise profits. Now they want executives to consider environmental, social and governance issues. The danger is that money managers impose their priorities, Edward Chancellor says. But there are ways to give ultimate owners a say.
Just Eat investors are stuck with its founder 27 Apr 2022 Some shareholders want to oust the Dutch takeaway group’s finance chief and supervisory board. Yet they have no obvious replacement for CEO Jitse Groen, architect of its disastrous U.S. expansion. It exposes the limits of investors’ ability to challenge powerful entrepreneurs.
Nielsen activist stand is tough to deliver 19 Apr 2022 WindAcre's resistance to the $10 bln sale of the TV-ratings group pits it against buyer and more prominent agitator-investor Elliott. WindAcre is putting its money where its mouth is, but confusing tactics and a demand for an absurd payoff make its campaign look flaky.
Atypical bear hug should kickstart Toshiba bids 1 Apr 2022 The hostile tactic usually involves pressuring a target with a generous offer. In this case, activist investor Effissimo and buyout shop Bain are squeezing the Japanese conglomerate with an artful display of their desire for a deal. It’s getting harder to avoid running an auction.
Carl Icahn is attempting to rewrite his legacy 30 Mar 2022 From a favorable documentary to campaigns criticizing how McDonald’s and Kroger treat pigs, the activist is crafting his final chapter. Icahn changed the course of many companies and his investment prowess is undeniable. But a full evaluation of his impact demands a broader lens.
Generali investors better off with devil they know 30 Mar 2022 A rebel billionaire is vying for control of the 190-year-old insurer, a linchpin of Italian finance. Francesco Caltagirone promises higher returns and bolder M&A than under CEO Philippe Donnet. Fuzzy targets and slowing growth should make shareholders wary of switching horses.
Toshiba task becomes more Sisyphean 24 Mar 2022 The Japanese conglomerate’s shareholders rejected management’s breakup plan and a hedge fund proposal to solicit buyout bids. It augurs fresh fighting over the board and the strategy. Outside agitators have reason for optimism but the long fight keeps eating away at returns.
Anaplan deal hints at floor under cloud valuations 21 Mar 2022 The business software company is selling to Thoma Bravo for $10 bln. Recent market carnage had trashed once high-flying cloud stocks - Anaplan's by a third or more. If cash-rich private equity firms start picking up companies in the sector, it could stem the decline.
Nielsen bid rejection deserves bad viewer response 21 Mar 2022 The video-ratings group dismissed a $9 billion bid from Elliott and others, a move that sent its shares down sharply. It's OK to hold out for a higher price, and that could be the endgame. But the standalone case for Nielsen is too optimistic, and too late, to be convincing.
Toshiba board rebel mainly helps governance cause 17 Mar 2022 Director and ex-hedgie Raymond Zage will vote for a proposal urging the company to consider buyout bids and share info with investors. He already backed a breakup, opposed by many funds. Even if offers underwhelm, listening to shareholders and opening up would be a good step.
Toshiba’s turmoil undermines its breakup plan 11 Mar 2022 Leading proxy advisers aren’t backing the Japanese conglomerate’s plan to split in two, saying it needs first to fix internal chaos before setting strategy. Activists want the $17 bln firm to study a full sale. If insiders lose the upcoming vote, all options have to be considered.
Capital Calls: Americans accept inflation for now 10 Mar 2022 Concise views on global finance: U.S. prices rose a whopping 7.9% year-on-year in February. Even so, Russia’s invasion of Ukraine has improved President Joe Biden's approval ratings. It may not last.
Activist sets up Australia’s AGL for a sick burn 28 Feb 2022 Snowcap wants the power company to shelve its demerger, fend off any more lowball offers from Brookfield and adopt the latter’s plan to ditch coal. That will ultimately add pressure on AGL’s underperforming board to sell and might even result in a higher price from its suitor.
7-Eleven clash shapes up to be Mt. Fuji moment 22 Feb 2022 Emboldened by its success in Japan, normally discreet ValueAct is publicly chiding Seven & i’s structure and governance. The $44 bln retailer has dug in after previously fending off Dan Loeb. Winning over local fund managers would help a bubbling flow of pushy investing to erupt.
Hasbro breakup is the monster under the bed 18 Feb 2022 An activist wants the toymaker to spin out the division that holds card game “Magic: The Gathering”. The alternative is for incoming CEO Chris Cocks to revive a plan to become a Disney-like media empire. Cocks deserves a chance, but the allure of a carve-up sets him a high bar.
Zendesk’s best M&A strategy starts with failure 14 Feb 2022 The software firm’s unpopular $4 bln bid for SurveyMonkey’s parent has pushed down its stock, irked activists and provoked a $16 bln opportunistic private equity bid. Zendesk’s shareholders can still vote down its deal. Doing so might secure a higher price for their own shares.
Nelson Peltz board swap leaves unresolved conflict 2 Feb 2022 The activist gave up a board seat at Invesco to take one at rival Janus Henderson, while holding stock in both fund managers. If the companies decide to merge, Peltz is a conflicted broker with inside knowledge. Even a good suggestion becomes unnecessarily controversial.