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Shareholder Activism

Salesforce’s activists have an easy job

23 Jan 2023

Corporate cage rattler Elliott took a stake in the $150 billion tech firm alongside Starboard. They might want board seats or say in founder Marc Benioff’s successor. But the company is a better builder than buyer. With growth out of fashion, that’s naturally a good place to be.

Capital Calls: Activism, Bond spat, Airline M&A

18 Jan 2023

Concise views on global finance: Aggressive shareholder campaigns picked up in 2022, but activism is becoming an overcrowded strategy. Meanwhile, M&A machine Melrose takes on a fight that might not be worth winning, and German airline Lufthansa eyes a stake in Italy’s ITA.

At Walt Disney, the G in ESG stands for goofy

11 Jan 2023

Nike Chairman Mark Parker will run the media giant’s board and a search for boss Bob Iger’s successor. It’s odd considering Parker was part of previous ill-fated CEO decisions. He also looks stretched as Disney squares off with pushy investor Nelson Peltz. The drama never ends.

Bayer’s rude health lays better path for breakup

11 Jan 2023

Activists including Jeff Ubben are piling into the $58 bln German seed and drug maker. Its cheap share price, thanks to the dire Monsanto deal, has for years dangled the promise of a lucrative carve-up. Improvements in the pharma unit and a CEO change make it more likely now.

Activists will be no-holds-barred in 2023

3 Jan 2023

As once-hot companies lost market value, investors did lots of wrestling with management in 2022. Even more is to come, according to Lazard’s Chris Couvelier, who explains on The Exchange how corporate giants’ strategic woes and tempting cash piles will shape activism in 2023.

Capricorn mess mixes new and old ESG goofs

22 Dec 2022

Shareholders are angry at a takeover of the $950 mln oil group formerly known as Cairn Energy, months after they rejected a separate deal. It’s partly about price. But it also reflects investors’ new concern over environmental risks, and a very old dislike of poor governance.

New shareholder ballots win vote of confidence

20 Dec 2022

In the first election under rules enabling votes for both company and dissident board nominees, investors at $5 bln apartment owner Aimco chose a split ticket. Victory for one of activist Jonathan Litt’s two candidates augurs more compromise – and power for proxy firms like ISS.

BlackRock’s activist investor fights passive tide

7 Dec 2022

A tiny shareholder says boss Larry Fink’s climate-change position falls short and that the $8 trln asset manager shouldn’t impose its beliefs on companies. Some customers agree, but the firm’s solid performance makes it a tough target. When things are going well, inertia reigns.

Breakup is best cure for Fresenius chronic pain

6 Dec 2022

Covid-19 disruption and staff shortages have hit the $16 bln medical group, in which activist fund Elliott owns a stake. Sold separately, its various bits could better reward investors. Flogging low-hanging fruit like hospital builder Vamed would earn CEO Michael Sen a first win.

Google owner makes a quixotic Chris Hohn target

15 Nov 2022

The billionaire’s TCI fund wants boss Sundar Pichai to slash pay, pare moonshots and repurchase more stock. Setting aside that Alphabet is controlled by its founders, its performance stacks up well against peers. There’s room to improve, but it also can afford to keep being bold.

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.