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.
Capital Calls: Dan Loeb, Daily Mail 2 Dec 2021 Concise views on global finance: The billionaire activist swats away his own gadfly investor; the UK tabloid’s controlling Rothermere family sweetens its take-private offer, to the presumable delight of the campaigners on its news desk.
Glencore’s activist is misguided but not unhelpful 30 Nov 2021 Bluebell is pushing the $63 bln miner-trader to spin off coal. Thungela’s plans to dig up more of the mineral after its Anglo spinoff weaken the argument, and prices are at record highs. Still, if it makes Glencore quit coal quicker than its 2050 target, it’s a job well done.
Capital Calls: Risky banks, UK SPAC, AO World 23 Nov 2021 Concise views on global finance: A global watchdog reckons JPMorgan is once again the world’s most systemically important lender; investment firm Hambro Perks launches a UK blank-cheque vehicle; the British online retailer issues its second profit warning in two months.
Capital Calls: Eni spinoff 22 Nov 2021 Concise views on global finance: The $50 bln Italian oil group has a new name for the renewable energy and retail arm it plans to partially list.
Icahn’s Southwest Gas mixtape has all the hits 19 Nov 2021 The activist is blasting overspending, making a hostile tender offer, criticizing a major deal and pushing for a breakup in his campaign at the $4 bln U.S. utility. They are classic Icahn tactics. But history suggests investors might do best if he gets only some of what he wants.
Elliott seeks hidden tech treasure in dull grocer 17 Nov 2021 Paul Singer’s fund took a 3% stake in $35 bln retailer Ahold Delhaize. Rather than cost cuts, the activist’s interest lies in the Dutch group’s online unit, worth perhaps $8 bln. But competition is fierce and rich valuations may not last. Elliott’s bet also needs good timing.
Capital Calls: Stadium naming, Diageo, Evolution 17 Nov 2021 Concise views on global finance: Crypto.com is paying heavily to rename Staples Center; The drinks maker plans to grow its market share by 50% in the next decade; the $36 bln Swedish gambling firm lost $2 billion of its market capitalisation after accusations of illegal gambling.
Richemont beats orderly retreat from digital fight 12 Nov 2021 Under pressure from activists, the Cartier owner plans to spin off its loss-making online arm to rival Farfetch and others. If valued in line with peer Zalando it would be worth a respectable 4.7 bln euros. A sale should help Richemont close the valuation gap with luxury rivals.
Toshiba split edges it slowly down the right path 12 Nov 2021 The $19 bln conglomerate plans to break into three, days after fellow former titan GE did the same. For Japan Inc, it’s revolutionary. More focused units should attract better managers and valuations. But the two-year timetable seems designed to discourage more vocal investors.
Richemont activism is more coaxing, less conflict 8 Nov 2021 Funds including Dan Loeb’s Third Point may push the Cartier owner to close a 20%-plus valuation discount to luxury peers. With half of the voting rights, Chairman Johann Rupert is in firm control. Unlocking value will depend on convincing him to make sensible strategic changes.
Capital Calls: BT’s fibre, Ford vs. Toyota, SocGen 4 Nov 2021 Concise views on global finance: Leaner broadband rollout boosts the UK telco’s defences against uppity investor Patrick Drahi; the two carmakers trade at similar multiples despite the Japanese outfit’s racier performance; the next leg of the French bank’s revamp will be harder.
Shell’s Loeb parry uses cash, capex and chutzpah 28 Oct 2021 The $190 bln oil major needs to deflect activist Third Point’s call to split itself up. High crude prices make it easier to promise fat cash returns and invest more in green energy. Given Shell should have done that anyway, fending off Dan Loeb also requires a certain brass neck.
Dan Loeb is oversimplifying Shell’s long game 27 Oct 2021 The activist wants the $190 bln Dutch oil giant to break up. That makes sense in theory from a valuation and capital allocation standpoint. But separating out fossil-fuel cash flows from greener energy risks starving Shell's planned transition of the funding it needs.
Jana Macy’s rejig sounds more like a sales pitch 15 Oct 2021 The agitator that took Whole Foods and Outback to task wants the $7 bln retailer to hive off its e-commerce unit. This Saks-like paper-shuffling could help Macy’s double in value. The idea may work better, though, as a teaser to persuade more lucrative bids for the whole company.
Elliott REIT activism exploits real estate oddity 14 Oct 2021 The activist is pushing healthcare office owner HTA to sell. The CEO left and the $7 bln trust can’t outbid private equity real estate funds that can lever up cheaply. But it can sell to them, and then investors can turn around and buy another public REIT.
Review: PepsiCo CEO memoir leaves work unfinished 8 Oct 2021 In “My Life in Full”, former boss Indra Nooyi describes fending off activists and making big acquisitions at the soda giant. She traces her path from southern India to hobnobbing with world leaders with humility. Her vision of an ethical consumer group looks far off, though.
Solvay activist’s Greenpeace costume doesn’t wash 4 Oct 2021 Smug from shaking up Danone, Bluebell Capital is chiding the chemicals group for dumping limestone on a Tuscan beach. With only token economic exposure, its bid to oust boss Ilham Kadri lacks heft. It’s also unclear what other investors gain from joining its eco-warrior campaign.
Elliott’s UK power play rests on blue-sky thinking 23 Sep 2021 The activist has built a stake in SSE and may seek a spinoff of its renewable generation arm. That could hike the $23 bln utility’s value. But it requires hefty assumptions about wind growth, and the state’s readiness to allow tinkering of a stable model amid an energy crisis.