Shareholder Activism

Danone could be next serving for hungry activists

5 Jul 2017

Low margins and poor investor returns mean the French maker of Activia yoghurt is a logical target. While an earlier campaign by U.S. activist Nelson Peltz had modest success, Third Point’s new stake in Nestlé and President Macron’s pro-business agenda argue for a fresh look.

Stonyfield deal whipped up by U.S. yogurt frenzy

3 Jul 2017

France's Lactalis is paying 20 times EBITDA for Danone's yogurt brand, or $875 mln. While American demand has propelled upstarts like Chobani to multibillion-dollar valuations, growth has slowed. It may be hard for the old-school label to woo new consumers.

Nestlé can ignore all Dan Loeb’s ideas bar one

3 Jul 2017

Of the four demands activist Third Point put to the Swiss giant’s board, just one is worth pursuing. Share buybacks, selling divisions and a sale of Nestlé’s L’Oreal stake wouldn’t obviously juice up the share price. Old-fashioned margin improvement holds the most promise.

UGGs could be cozy fit for buyout barons

28 Jun 2017

A pushy investor in $2.2 bln Deckers, owner of the trendy sheepskin-lined boots, issued an odd ultimatum to the board: sell the company or face a fight at the ballot. The numbers may stack up for private equity. It's a question of whether valuation and retail risk are too high.

Nestlé serves up only semi-sweet buyback

27 Jun 2017

Days after being put on the spot by Dan Loeb, the Kit Kat maker said it would repurchase up to $21 bln of shares over three years. It's an incremental step, like a review of the U.S. candy arm. Ignoring bigger issues, however, could allow the activist to marshal more support.

Nestle gives Dan Loeb an Alpine peak to climb

26 Jun 2017

The pushy billionaire has set his sights on the Swiss Alpo-to-Perrier producer. Consumer groups such as P&G and Pepsi have proven tough activist targets. Loeb clearly likes a challenge, having recently agitated in lethargic Japan. And $263 bln Nestle may be a movable mountain.

Upscale U.S. mall owner’s win warrants a discount

6 Jun 2017

Chairman Robert Taubman survived a shareholder insurgence after his Taubman Centers agreed to force directors to face a vote every year. The late concession seemed to sway big funds – for now. Given industry woes and investor ire, the $3.5 bln company didn't buy itself much time.

GM speeds away from Einhorn toward nastier traffic

6 Jun 2017

More than 90 pct of shareholders rejected the hedge-fund manager’s stock-split proposal. That removes a distraction for CEO Mary Barra. But GM’s stock is flatlining, U.S. car sales are sluggish and the competition for connected and self-driving cars is just getting on the road.

Akzo is emblem for new “fortress Europe”

1 Jun 2017

The Dutch maker of Dulux paint thwarted a generous 25 bln euro takeover attempt from U.S. rival PPG without putting forward a convincing financial defence. As European governments reach for more power to fend off unwanted mergers, Akzo has shown how shareholders can lose out.

Shareholders are best judges of PPG’s Akzo bid

30 May 2017

A Dutch court threw out activist Elliott’s attempt to force talks between the paint maker and U.S. suitor PPG. That still leaves the other option: for PPG to appeal directly to shareholders. The 25 bln euro price looks attractive, and there is little downside in going hostile.

Elliott’s hard work is just starting at Arconic

22 May 2017

The activist fund’s deal ending its bitter fight with the car- and plane-parts maker strengthens its grip on the board. It also puts one of its picks into the ring to be CEO. That shifts Elliott’s role from attacking poor results and governance to showing it can improve them.

Elliott turns activist hose on burning Bush

18 May 2017

Medical-software firm Athenahealth trades at a big discount to rivals after expanding poorly and often missing estimates. Elliott’s 9 pct stake in the $5 bln company should allow it to douse colorful and erratic founder Jonathan Bush’s role as boss or force an outright sale.

ValueAct practices what it preaches on succession

16 May 2017

The $16 bln hedge fund has made governance a signature issue in its activist approach. In handing over investing duties to longtime deputy Mason Morfit, founder Jeffrey Ubben is showing he can walk the walk. Other hedgies who hold on too long might learn from this example.

BHP should take Elliott’s activism as a compliment

16 May 2017

The fund has renewed its call for the miner to break up. BHP isn’t the only one with portfolio clash – rivals Rio Tinto, Anglo American and Glencore all have bits that don’t fit. But BHP’s oil business is well suited to a spinoff. Resistance makes it look more desirable.

Whole Foods board changes whet activists’ appetite

10 May 2017

The $12 bln organic-food purveyor is replacing more than half of its board, a step to appease Jana Partners. But the fund, with 8 percent of shares, wants a sale, and others are pounding the table. As long as Whole Foods same-store sales keep declining, they’ll stay hungry.

Shareholder battle weakens Akzo’s standalone case

9 May 2017

Activist investor Elliott is taking the Dutch paint maker to court in an attempt to oust chairman Antony Burgmans. Akzo’s defence against suitor PPG rests on its stock trading on a higher multiple after a corporate rejig. But bad governance could cancel out any upside.

Dan Loeb’s Honeywell spin goes too far

5 May 2017

Hiving off the $100 bln conglomerate’s aerospace unit could boost the stock. But the activist’s argument that it would increase shareholder value by a fifth is a stretch and ignores the benefits the unit brings to Honeywell. New CEO Darius Adamczyk has other levers to pull first.

Arconic board shoves head back in the sand

4 May 2017

Firing CEO Klaus Kleinfeld gave hope directors might embrace bigger strategic changes to improve results. Now they’re contending the former boss had it right and that two new board nominations should be change enough. Its argument, like the outfit’s performance, is poor.

Credit Suisse bonus vote exposes two problems

28 Apr 2017

Two-fifths of shareholders at the bank’s AGM rejected its short-term bonuses. Yet 91 pct approved the reappointment of Chairman Urs Rohner. Credit Suisse lacks two things a good company needs: a chair who holds the CEO to account, and investors who kick up a fuss if he doesn’t.

Henry Kravis finds polite barbarian at his gate

27 Apr 2017

ValueAct disclosed a nearly 5 pct interest in KKR. Jeff Ubben's firm is usually friendlier than many activists and sounds positive on the buyout shop's prospects. Private-equity stocks have lagged bullish valuation hopes, though, and that could lead to a push for bigger changes.