Shareholder Activism

BP reincarnates as more vulnerable Shell

26 Feb 2025

The $89 bln oil major is following its rival’s playbook in abandoning renewable targets and shrinking green investments. It could have gone further in selling assets and returning capital. A lowly share price could give activist investor Elliott support to push for bolder action.

GSK drug pipeline requires bigger cash injection

25 Feb 2025

The $77 bln pharma group trades at a chunky valuation discount to rivals like Novartis and AstraZeneca. Little wonder since boss Emma Walmsley faces a patent cliff and a misfiring vaccine unit. Spending more on M&A and research, rather than share buybacks, could help.

Capping board tenure would be activist kryptonite

18 Feb 2025

Ski slope operator Vail Resorts and casket maker Matthews are among those under siege for having long-serving directors. It’s now a factor in two-thirds of dissident campaigns. Among the many reasons for boardroom expiry dates: force pushy investors to develop new weapons.

Smiths’ long-awaited split shows promise

31 Jan 2025

The $8.8 bln British engineer plans to either sell or spin off two of its four units. If all goes to plan, there’s more value for investors including activist Engine Capital. In the absence of a big uplift, the remaining high-margin divisions will be a more attractive target.

US Steel now all about striking while iron is hot

27 Jan 2025

A hedge fund has mobilized to oust CEO David Burritt as he fights to save his $15 bln Nippon deal. The investor’s links to Cleveland-Cliffs are odd, but there’s limited upside from a sale to the rival suitor unless it shares the synergies. Time is clearly of the essence.

Age is the wrong number by which to judge a CEO

21 Jan 2025

Grumpy investors seeking to oust boss Seifi Ghasemi from $70 bln Air Products are harping on the fact he’s 80. Seniority raises the stakes for succession planning, but poor returns furnish a better yardstick. The irony is that they suffered because an old dog learned new tricks.

Smiths’ overdue split requires more patience

17 Jan 2025

Activist Engine Capital has called for the breakup of the $7.4 bln British engineering group. Improving financial performance, and a depressed valuation makes a separation plausible. But prising apart the units ranging from metal detectors to cable kit isn’t a simple task.

London’s lethargy aids Boaz Weinstein’s new tilt

7 Jan 2025

The US hedge fund manager wants to boot out the board at seven UK investment companies. His fund Saba, which bet against the London Whale, is no stranger to targeting underperforming funds. The growing lack of investor engagement in UK shares makes it easier to do so.

Japan’s virtuous M&A circle starts with 7-Eleven

5 Dec 2024

The battle for control of $45 bln convenience store owner Seven & i is being cheered in Tokyo. It’s evidence of progress in the drive to improve efficiencies in the world’s third-largest economy. It could also be a sign of what’s to come if officials make the right next moves.

Tycoons’ odd telco bets mask a greater logic

26 Nov 2024

In recent years high-profile, rich investors like Carlos Slim have snapped up stakes in the likes of $19 bln BT. These haven’t always yielded juicy returns, nor prompted strategic shifts. But as a bet on much-needed consolidation, they may yet end up looking smart.

Elliott puts too many eggs in Honeywell’s basket

13 Nov 2024

The pushy fund manager’s effort to cleave the $150 bln conglomerate is backed by its biggest investment ever. A breakup like ones at other creaking empires such as GE makes sense, but invoking those successful splits is risky. A projected uplift of at least 50% looks optimistic.

French fries make a tasty $11 bln takeover target

5 Nov 2024

Lamb Weston, which sells spuds to McDonald’s and others, is under pressure from pushy investor Jana. A bolder turnaround plan could get messy and leave it a hard-to-value oddball anyway. It’s a better side dish for a peer like agribusiness giant Cargill or cereal company Post.

Vivendi activist’s critique falls on deaf ears

1 Nov 2024

Pushy fund CIAM reckons a planned carveup of the 10-bln-euro media empire favours the controlling Bolloré clan. That’s true. Yet the split at least eases a conglomerate discount. And since voting it down would be a leap into the unknown, investors will probably just stay in line.

One valve would release pressure at Air Products

17 Oct 2024

A $15 bln commitment to clean hydrogen is weighing on the industrial gas producer. The weakness has attracted attention from pushy investors over governance and capital usage. Selling some of the unproven green energy would help 80-year-old boss Seifi Ghasemi deflate the tension.

Elliott takes flyer with elite intimidation status

14 Oct 2024

The hedge fund escalated its battle with $18 bln Southwest and CEO Bob Jordan by calling for a shareholder meeting to shake up the board. It’s a rare public clash as companies increasingly acquiesce to pushy investors. If the airline prevails, it may embolden others to push back.

Pfizer’s M&A disease brings activist cure

7 Oct 2024

The pharma giant generated over $30 bln of extra cash during the pandemic, then spent over twice as much on questionable deals. With shareholders sitting on a loss under CEO Albert Bourla, Starboard will push for a return to former CEO Ian Read’s parsimony.

Southwest’s new flight plan carries excess baggage

27 Sep 2024

The $18 bln airline expects seat fees to help lift its operating margin to 10%, but not until 2027. Captain Bob Jordan and his crew also have consistently missed targets. A tough overhaul and a weak track record will weigh them down in the dogfight with pushy investor Elliott.

Rentokil’s US bug invites management fumigation

11 Sep 2024

The $13 bln pest controller’s shares fell 18% amid a new warning on growth. CEO Andy Ransom’s depleted credibility will embolden activist Nelson Peltz. A new boss or a private equity owner might better protect Rentokil’s US market share amid its tricky Terminix integration.

Murdoch dissident chases another unpromising lead

9 Sep 2024

Hedge fund Starboard wants to rid $15 bln News Corp of super-voting stock that gives the media mogul and his family de facto control. Other founders have relented elsewhere. Narrowing the Wall Street Journal owner’s bad-governance discount, however, will be as elusive as ever.

Price may be Couche-Tard’s lowest Seven & i hurdle

21 Aug 2024

The Canadian suitor may be able to cut enough costs to offer a 40% premium for its rival, valuing it at $59 bln. But antitrust concerns might require selling some US assets. And the target's status in Japan as a quasi-national asset will complicate attempts to seal a deal.