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.
Elliott double dips with pandemic fallen angel 31 Jan 2022 The activist is buying Citrix for $16.5 bln after shaking it up starting in 2015. Management turmoil, an ugly transformation, and missed pandemic opportunities left the software firm vulnerable. Plans to merge it with a similar enterprise company give Elliott a solid second chance.
Vodafone intruder adds hope to activist toolbox 31 Jan 2022 Shareholder Cevian Capital lacks obvious levers to boost the 36 bln pound telco’s performance. Consolidation in markets like Spain, Italy and the UK would lower costs and improve pricing. But success depends on competition watchdogs dropping their opposition to fewer operators.
Elliott flub hurts Hong Kong investor activism too 31 Jan 2022 The pushy shareholder has thrown in the towel on its seven-year battle with Bank of East Asia. It looks like a costly defeat for Paul Singer’s firm. That an industry titan failed to break through family ties so prevalent in the city shows the hazards for similar campaigns.
Pushy 7-Eleven investors are welcome inconvenience 27 Jan 2022 The Japanese owner of the Slurpee-selling chain is under growing pressure to spin off struggling units and overhaul the board. There’s a risk of a frustrating battle like the one dragging out at Toshiba. A more receptive approach, however, could deliver Olympus-like results.
Capital Calls: TCI’s railroading tactics 26 Jan 2022 Concise views on global finance: The fund run by Chris Hohn has settled with Canadian National after a messy battle for the board.
Peltz’s Unilever fight is easy; winning is harder 24 Jan 2022 The investor who took on Procter & Gamble has bought a stake in its European rival. Sluggish growth and CEO Alan Jope’s failed bid for GSK’s consumer arm give Unilever shareholders more reason to welcome an activist. Reshaping the company to boost performance requires more work.
Peloton activist has right diagnosis, dubious cure 24 Jan 2022 Blackwells Capital wants CEO John Foley out and the $9 bln online fitness firm put on the block. An 80%-plus slump from the home-exercise group's peak stock price confirms a squandering of its pandemic advantage. But a big-name buyer like Apple or Disney is an improbable answer.
Capital Calls: Activist investors, P&G, Rivian 19 Jan 2022 Concise views on global finance: Underperforming UK stocks lure cage-rattling shareholders to London; sickness and germaphobia boost the $380 bln company’s earnings: And Ford Motors and Amazon.com book big gains on investments in the electric carmaker as its stock tumbles.
Capital Calls: Dan Loeb’s gadfly circles again 18 Jan 2022 Concise views on global finance: The U.S. activist’s activists up the ante with call for independent director.
Unilever can still avoid Danone’s fate 14 Jan 2022 The $137 bln Dove maker’s stock has lagged rivals, activist Nelson Peltz may be circling, and other investors are grumbling. The recent ouster of the French yoghurt maker’s boss is a warning. CEO Alan Jope could pre-empt any revolt with clearer targets to sell struggling brands.
Cerberus hellish German bank bet reaches early end 11 Jan 2022 The U.S. investor sold nearly half of its Deutsche Bank and Commerzbank stakes at a 20% loss. Its investment suffered from bad timing, and the difficulty of forcing change with a small holding. Fund constraints mean the group is now selling in the middle of the banks’ recovery.
Turkish mobile spat exposes state fund weakness 10 Jan 2022 Billionaire Mikhail Fridman wants to overhaul Turkcell’s board to boost the $3 bln group’s valuation. Turkey’s state wealth fund, which appoints most of the directors, looks an obstacle. With stakes in other ailing companies like Turkish Airlines, it’s proving a poor custodian.
Nelson Peltz needs to choose his asset manager 7 Jan 2022 The activist's Trian wants board representation at Janus Henderson, backed by its 17% stake. But Trian also owns 10% of Janus competitor and potential merger partner Invesco. If it came to a deal between the two, Peltz would look conflicted and that could discredit his arguments.
Dissent endures for Hong Kong shareholders 6 Jan 2022 The buyer of camera components maker Yorkey Optical lifted its offer by 14% after pushback from activist investor David Webb while minority owners thwarted tycoon Joseph Lau’s attempt to take his Chinese Estates private. Small financial victories carry greater meaning these days.
Elliott picks low-hanging fruit with builder punt 15 Dec 2021 After a bruising battle at utility SSE, the activist is targeting British housebuilder Taylor Wimpey. Its demands are modest and its criticisms a little overdone. Still, the $8 bln company’s lacklustre shares mean other investors should back Elliott’s call for an external CEO.
Centene CEO defenestration will create value 14 Dec 2021 Activists got the stick they needed to force out Michael Neidorff after the $47 billion managed-care firm took a provision of more than $1 billion to settle claims that it overcharged Medicaid. Their next order of business is to replicate rival Molina’s margin success.
Exxon and activists have one point in common 9 Dec 2021 Some of the fossil fuel giant’s investors think the new board isn’t making enough progress on carbon targets and want boss Darren Woods to go. With oil prices above $70, the board can resist most of their demands. But both sides have an interest in keeping investment in check.
Capital Calls: Zoom, U.S. jobs 3 Dec 2021 Concise views on global finance: The video-conferencing service is investing in Amex Global Business Travel as part of a $5.3 bln SPAC deal; in the United States, only 210,000 positions were added in November, but the unemployment rate fell.