Shareholder Activism

Disney has a weak hand in activist rematch

9 Oct 2023

The $152 bln media giant promised cost cuts to sate cage-rattler Nelson Peltz earlier this year. But that is slow-going and the stock has since fallen by a quarter while peers are up. Now the activist is back and wants a board seat. A weakened Disney’s best bet: invite him in.

Capital Calls: Deliveroo

14 Sep 2023

Concise views on global finance: The UK food delivery company’s shares rose 5% amid hopes of a potential deal, but a rich takeout looks unlikely.

Capital Calls: Selling Salesforce

15 Aug 2023

Concise views on global finance: After successfully agitating for change at the $200 bln software developer, Jeff Smith’s Starboard and Dan Loeb’s Third Point are offloading their stakes. It’s probably a good time to pocket gains considering the challenges ahead for Big Tech.

South Korea’s rematch with Elliott is a lose-lose

3 Aug 2023

Seoul is challenging a $100 mln arbitration award to Paul Singer’s feisty hedge fund over a Samsung merger in 2015. Accepting defeat will invite more claims against the government but the appeal prolongs an embarrassing national saga. Korea Inc will pay the price.

Austrian bank short attack is watchdog’s nightmare

30 Jun 2023

BAWAG shares fell 8% after hedge fund Petrus said the lender had a shoddy business model and poor governance. Sector-beating returns make it a tough target. But following this year’s bank runs, regulators will fret that such campaigns could become a self-fulfilling prophecy.

Elliott asks too much too soon at NRG

23 Jun 2023

The activist wants the CEO of the $8 bln utility to go, in its second campaign against the company. Both sides see the need for cost cuts, returning capital and refreshing the board. Elliott’s worries about acquisitions are reasonable too. But it’s not yet time for heads to roll.

Toyota shareholders make 15% the new win-win

16 Jun 2023

That’s how few voted against re-electing Chair Akio Toyoda to the board over concerns about independence. He can claim victory but the biggest dip in years of his approval rating is awkward. It puts pressure on the $270 bln carmaker to keep its US shareholders onside.

Brenntag has simple fix for activist feud

14 Jun 2023

The $12 bln German chemicals group is facing a board battle with funds that want it to improve humdrum performance via a breakup. Separating its two units probably makes sense if they can’t both run smoothly. Setting a medium-term deadline to decide would ease the strife.

Capital Calls: GAM

8 Jun 2023

Concise views on global finance: An investor group led by telecoms billionaire Xavier Niel is attempting a tricky boardroom coup at the ailing fund manager.

Capital Calls: US debt deal

30 May 2023

Concise views on global finance: The pending deal for raising the debt ceiling would shift $20 billion out of the government’s tax collector. The move eases some short-term budget pressures, but could surrender a seven-fold payoff down the road.

Illumina shareholders vote for lose-lose outcome

25 May 2023

Carl Icahn scored a seat on the $30 bln biotech’s board, but fell short of the three he sought. Boss Francis deSouza won re-election but must now deal with the activist’s lieutenant. And newer investors hoping Illumina was in for a big shake-up will be disappointed. No one wins.

Telco tycoons’ UK bets look stuck underwater

25 May 2023

Patrick Drahi, Xavier Niel, John Malone and Abu Dhabi’s e& have lost $2.4 bln on about $13 bln worth of investments in BT and Vodafone, Breakingviews estimates. It’s hard to see either firm recovering soon, leaving their big-money backers potentially stuck in the quicksand.

Activist Yelp review is worth hearing out

23 May 2023

TCS Capital wants the local listings site to explore a sale, pitching a tie-up with Barry Diller’s home-services rival Angi. A targeted $70-per-share price – double Yelp’s current valuation – seems absurdly high. But potential cost savings make the combo an intriguing blueprint.

Capital Calls: GAM takeover saga

16 May 2023

Concise views on global finance: The stricken fund group is an unlikely target for activists led by billionaire telecoms tycoon Xavier Niel.

Capital Calls: Walt Disney

10 May 2023

Concise views on global finance: Bob Iger’s first full quarter since returning as CEO opened a window onto multiplying challenges across the Magic Kingdom.

ValueAct loses its temper in 7-Eleven

10 May 2023

Boss Mason Morfit prefers to chide undervalued conglomerates behind closed doors. But Seven & i has so provoked him, his firm is publicly calling for chief Ryuichi Isaka’s head. ValueAct has a good case, so the looming showdown will test how rude activists can get in Japan.

Buffett’s imprint on Berkshire reaches its limit

8 May 2023

The billionaire again made clear that energy lieutenant Greg Abel will someday be the company’s next CEO. By bequeathing his stock to the Bill and Melinda Gates Foundation and others, Buffett has outlined ownership succession too. Even those best-laid plans leave notable holes.

It’s time HSBC’s top owner calms down or sells up

4 May 2023

Ping An’s fight for a rejig is going nowhere, more so after the $150 bln lender’s bumper profit. Continuing risks hurting the Chinese insurer, HSBC and maybe even Hong Kong. Better to peacefully reap the benefits of boss Noel Quinn’s overhaul - and rejoin the fray if he falters.

Icahn may fall short in quest of the holy Grail

21 Apr 2023

New rules in proxy contests haven’t helped activists in Disney or Salesforce. But with a concentrated shareholder base, they may embolden Carl Icahn as he agitates at Illumina, in the process of buying cancer detector Grail. The trouble is Icahn is pushing beyond the attainable.

Cellnex could use an outsider with a sharp knife

30 Mar 2023

Hedge fund TCI has accused the Spanish tower operator of “mishandling” an ongoing CEO search. Once an M&A machine, the $27 bln firm needs to cut its debt load markedly. That requires a new boss with a fresh perspective, not an insider.