Shareholder Activism

Akzo Nobel-Axalta merger is a hostage to history

8 Nov 2017

A proposed blend of the two paint makers could produce colourful cost savings. That must mean job losses – and Akzo is the less efficient. Yet the $23 bln Dutch group deflected a bid from PPG saying cuts were a no-go. It’s hard to see how it could do the requisite U-turn now.

China’s Sina fires up governance Wayback Machine

8 Nov 2017

Days after escaping a board insurgence effort, the web outfit issued new stock that hands control to its chairman. It retroactively aligns Weibo's parent with Silicon Valley structures just as momentum swings against them. It's a bad turn for China Inc that also cost $500 mln.

NXP is key piece in $105 bln chipmaker jigsaw

7 Nov 2017

If Qualcomm wants to fight an unsolicited offer from Broadcom, one logical move is to complete its own $38 bln deal for automotive chip specialist NXP. A year later, that price looks low. Qualcomm now has a double reason to raise it – but the timing is out of its hands.

TCI turns “inactivist” investor with LSE campaign

6 Nov 2017

The hedge fund usually demands that CEOs quit. This time it’s pushing for London Stock Exchange boss Xavier Rolet to stay in his job while criticising the chairman. The LSE board owes shareholders an explanation. The risk of a board spat, though, is that both men end up leaving.

Sina’s board wins Yahoo-like prize

3 Nov 2017

Bosses of the $8 bln Chinese web outfit thwarted a U.S. hedge fund's quest to add two directors. Sina's big problem is that it's worth less than its big stake in Weibo. As Yahoo laid bare, it can be hard to run a company whose value sits elsewhere – regardless of who's in charge.

Belt-tightening gives Tidjane Thiam breathing room

2 Nov 2017

The Credit Suisse boss delivered an 80 pct jump in third-quarter pre-tax profit despite lower revenue. An activist seeking to break up the Swiss lender can point to a misfiring investment bank. But cost-cutting and higher wealth management earnings give Thiam the upper hand.

Holding: Facts may spoil board-elections brawl

1 Nov 2017

Shareholder advocates say subjecting all directors to annual votes keeps firms fit, while critics like lawyer Marty Lipton argue it rewards costly short-term moves. Now a compelling study pokes holes in both views. It’s welcome progress in a testy but needed governance debate.

Vivendi can unlock more time to stalk Ubisoft

1 Nov 2017

French laws may soon force the media conglomerate chaired by Vincent Bolloré to decide whether to bid for the 7 bln euro video-games group. He has more choices than putting up or shutting up. Vivendi can duck the decision by converting part of its stake into non-voting stock.

Axalta deal complicates Akzo’s juggling act

30 Oct 2017

Fresh from deflecting a takeover, the Dutch group is considering a merger of its paints unit with its U.S. rival. A combination makes sense. But new CEO Thierry Vanlancker is already grappling with weak results and a chemicals spinoff. That raises the risk of dropped balls.

Activist broadcasts Japanese governance weak spot

25 Oct 2017

A UK investor wants TBS to sell corporate stakes and return cash to shareholders. Fair enough: The $3.5 bln TV network owner has little obvious use for Tokyo Electron and other holdings. Despite some broader progress, it will take more pressure to break this bad Japan Inc habit.

Arconic’s boardroom peace comes just in time

23 Oct 2017

The car and aircraft-parts maker resolved its management struggle with activist Elliott Management by tapping GE’s Charles Blankenship as CEO. A fresh earnings miss means he’ll need to hit the ground running. Troubles in a key new engine program are slowing progress on margins.

Credit Suisse breakup faces trading conundrum

17 Oct 2017

An activist investor wants to split the Swiss bank into three parts. On paper, the private banking and asset management units alone justify its $41 bln market value. But the ailing investment bank – including an estimated $250 bln of derivatives – would struggle to stand alone.

Viewsroom: Activists keep the fight alive

12 Oct 2017

Nelson Peltz narrowly lost his acrimonious bid for a P&G board seat. Honeywell’s decision to spin off two small units was less than Dan Loeb lobbied for. These are temporary setbacks. Past experience and their financial firepower make shareholder activists a powerful force.

KKR sets a collision course with Elliott in Japan

12 Oct 2017

The buyout firm raised its bid for a Hitachi subsidiary, offering outside investors $1.3 bln. That price might not satisfy activist shareholder Elliott. KKR may need to sweeten the deal, within reason - its reputation in Tokyo for disciplined buying is worth preserving.

Smith & Nephew could use surgical activism

11 Oct 2017

U.S. hedge fund Elliott is building a stake in the artificial knee and hip maker. Talk that the company could be taken over has surfaced more often than actual bids. Agitating for bigger profit margins and a breakup may be more rewarding than hopes for a bigger deal.

P&G scores hollow victory over Nelson Peltz

10 Oct 2017

The $234 bln toiletries firm says the activist has lost his fight for a board seat. Peltz says the vote is too close to call. Either way, the narrow margin should be a wake-up call for P&G’s insular leaders, even if change comes hard for them. Expect Peltz to stick around.

Cox: P&G counting on an investor electoral college

6 Oct 2017

There's no strong reason for the insular consumer-goods titan to deny Nelson Peltz a board seat. Hedge funds will back him, but as in U.S. elections only half the retail shares may vote. That leaves Vanguard, BlackRock and State Street to play Wisconsin, Ohio and Pennsylvania.

Retailer puts huge discount on activist overreach

25 Sep 2017

Two hedge funds want to oust Tuesday Morning’s Steven Becker, a fellow pushy investor who ended up as CEO. The home-furnishing chain’s stock has fallen 62 pct on his watch - a reminder that having smart financial ideas doesn’t mean activists make good corporate chieftains.

Options hurt Bill Ackman’s cause at ADP

20 Sep 2017

The pushy hedge-fund boss owns most of his 8.3 pct stake in the $50 bln payroll processor with derivatives. It's a common ploy, but Ackman's plan is lackluster and investors can pick from plenty of activist campaigns. His choice of securities only makes it harder to gain support.

D.E. Shaw’s rare activist shot falls short at EQT

14 Sep 2017

The hedge fund is calling for a breakup of the natural-gas company, echoing Jana Partners. Yet it’s content to let the company first buy Rice Energy for $6.7 bln despite the deal’s flaws. It’s an unconvincing foray into activism for a fund better known for computerized trading.