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Shareholder Activism

Conscious capitalism falls behind in the polls

4 Nov 2022

As U.S. midterms loom, companies are striving to appear neutral. For bosses of companies like BlackRock and Twitter, being disliked by both sides has become a badge of honor. It’s rational, but it’s also a shame. The opposite of so-called woke capitalism isn’t democracy but apathy.

King Icahn’s Crown stake invites regular activism

3 Nov 2022

The activist has an 8.5% stake in the drinks-packaging firm, which had a tough last quarter that caught its CEO off guard. A campaign at Crown is different than his recent one at McDonald’s – it has real financial teeth. Plus preying on management mistakes gave Icahn his throne.

It’s hard to squeeze pet food out of Colgate tube

28 Oct 2022

Pushy investor Dan Loeb makes a valid point that the toothpaste maker’s Hill’s division would be worth more as a stand-alone company. Breakingviews’ calculations suggest a potential 16% uplift in value. There also would be some adverse effects, however, which undermine the case.

Alan Jope exit is easiest step of Unilever revival

26 Sep 2022

Shares in the $111 bln Dove maker rose after it said its CEO would leave by end-2023. A botched bid for GSK’s personal health arm hit Jope’s credibility. But even with a new broom Unilever will struggle to pull off a big deal, and selling lower-growth units looks harder to do.

Kohl’s investor tries to make old wardrobe work

22 Sep 2022

Investor Ancora wants the CEO and chairman gone after the $3 bln retailer’s stock price halved in a year. But the activist has been around since 2020, and board members it backed haven’t helped. A sale is needed, but if Ancora doesn’t step up its game, it is just a distraction.

Vodafone’s new activist is mixed investor blessing

21 Sep 2022

French tycoon Xavier Niel bought 2.5% of the $34 bln telecoms company. That will cheer fellow shareholders, like Cevian Capital, who are pushing CEO Nick Read to simplify the group. Yet the risk is that Niel is more interested in getting hold of its Italian assets on the cheap.

Loudmouth investors tone it down for new era

20 Sep 2022

Jeff Smith’s Starboard has ideas for $5 bln Wix but isn’t asking for a board seat. Bill Ackman and Dan Loeb also are playing nicer. Updated proxy voting rules make shareholder campaigns easier. Getting access to directors makes a bigger difference and demands tactical changes.

Disney’s big ESPN choice, Rio Tinto Mongolia drama

15 Sep 2022

Activist Dan Loeb backed away from his demand that the $203 bln media firm sell its sports network. In this Viewsroom podcast, Breakingviews columnists debate whether it’s the right move. And the $94 bln mining giant’s attempt to secure copper supply may need heavier machinery.

Rio’s Mongolian buyout saga has further chapters

13 Sep 2022

Some investors in Turquoise Hill Resources, which owns 66% of the huge Oyu Tolgoi copper project, have spurned the $97 bln miner’s latest pitch. Rio Tinto’s offer is much improved, and backed by the Turquoise board. But minorities have some grounds to hold out for yet more.

Ping An’s HSBC campaign fails the financial test

7 Sep 2022

The Chinese insurer has doubled down on its call for the $123 bln bank to spin off its Asian unit. Doing so would put cross-border revenue at risk and raise funding costs. To make it worthwhile, the business would have to snag a premium to most regional peers. That’s unlikely.

CEOs, not proxy cards, are what fuel activists

1 Sep 2022

A change to the way investors vote for U.S. company directors has kicked in, and more activism is likely. Boards facing the end of easy funding, burned-out workforces, and falling valuations are exposed. Still, gadflies' gripes will only resonate if CEOs aren’t doing their jobs.

Dan Loeb can help Disney get with the program

15 Aug 2022

The pushy hedge fund manager is back with a fresh stake in the $222 bln entertainment empire. He wants to shake up the board and is prodding boss Bob Chapek to spin off ESPN. Cutting the cord with old cable networks would help accelerate the company’s transition into streaming.

Richemont’s governance armour is hard to pierce

12 Aug 2022

Activist Bluebell wants ordinary investors to appoint their own director on the board of the $63 bln Cartier owner. Yet Chair Johann Rupert’s big voting power means he could stifle the attempt. Without a fresh voice, contrarian business ideas may not get much airtime.

Financial edits befit New York Times

11 Aug 2022

Pushy investor ValueAct has taken 7% of the $5 bln news outfit, urging it to hawk a digital bundle a la Netflix. There’s logic to the idea, which could boost the top line. Targeting a family-controlled company is risky, however, even after cracking Japan’s stubborn boardrooms.

Transportation M&A nightmare worth the trip

8 Aug 2022

Often when industries with monopolistic traits consolidate – airlines, trains - there’s a race to be an acquirer. Buyers end up paying top dollar, and regulatory concessions can be steep. Still other industries have shown the finish line is rewarding if investors stick it out.

Capital Calls: Nelson Peltz under pressure

8 Aug 2022

Concise views on global finance: A group of shareholders has replaced the chairman of a London fund managed by the legendary activist investor.

Nelson Peltz’s ego may be only winner in scrap

4 Aug 2022

Investors in a London fund managed by the agitator are trying to replace its board and wind it down. The 80-year-old might prevail in a shareholder vote, but he still faces other battles. As he’s said to other executives, sometimes a compromise is better than a distraction.

HSBC’s cross-border ties are paying dividends

1 Aug 2022

CEO Noel Quinn promised a 12% return on tangible equity and higher payouts to shareholders as the global bank rebuffed Ping An’s breakup call. Higher U.S. interest rates help, but if the Chinese insurer has spurred the $125 bln bank to raise its game, all investors will benefit.