Shareholder Activism

Health adds new letter to ESG for food groups

12 Jul 2022

Government crackdowns on junk food marketing will hurt sales for companies like Frosties maker Kellogg. And investors are increasingly pushing consumer groups to use independent criteria to show how healthy their grub is. Tougher scrutiny will mean a valuation slap for laggards.

Japan’s activists chip away slowly but unsurely

29 Jun 2022

Toshiba adding representatives from two pushy investors to its board represents another landmark for the world’s third-biggest market. The number of campaigns is only inching up, however, and it’s mostly smaller companies being targeted. The slog involved makes progress tough.

Veteran Nelson Peltz makes rookie mistake

21 Jun 2022

The activist investor is facing a shareholder revolt at his London-listed fund. He joins other high-profile peers like Dan Loeb to get embroiled in messy spats. Whatever the appeal of raising long-term capital in public markets, sometimes it’s easier to stick to your knitting.

ESG raider needs to dig deeper

31 May 2022

Jeff Ubben’s Inclusive Capital has made a $1.9 bln offer for UK homebuilder Countryside. It’s both a bet on the need for more affordable housing, and an opportunistic raid on a target tainted by governance woes. But the ValueAct founder’s lowball bid needs a little sprucing up.

Capital Calls: Peltz bolsters Unilever’s M&A cred

31 May 2022

Concise views on global finance: The U.S. investor’s seat on the board should help CEO Alan Jope sell deals to investors.

Icahn squanders golden chance to shape McDonald’s

25 May 2022

The activist’s campaign to shake up the chain’s board with two directors over claims of the mistreatment of pregnant pigs is likely to fail. ESG issues can usher in change as Exxon can attest. But Icahn’s focus is too narrow, and McDonald’s board – and business – could use help.

St-Gobain activist hits right nails at wrong time

12 May 2022

Bluebell wants the 27 bln euro French construction group to rebuild by ditching its chairman and less profitable units. The upstart investor’s ideas have firm foundations. Its only problem is new CEO Benoit Bazin is already on the case, and the results are starting to show.

BlackRock spikes guns of green activists

10 May 2022

Larry Fink’s group will back more oil and gas production. After COP26, institutional money looked set to phase out fossil fuels, but an energy crisis has intervened. Rivals may follow the $10 trln fund giant, propping up driller valuations and complicating the green transition.

Japan bank agitator set to prove a sad point

6 May 2022

UK hedge fund Silchester wants $3 bln Bank of Kyoto and three peers to pay higher dividends using income from absurdly outsized equity stakes. It would sensibly deploy cash and put a spotlight on weak lending activities. Alas, being right in Japan is less than half the battle.

HSBC breakup, Big Oil’s surprise restraint

5 May 2022

The $129 bln bank is under pressure from its largest shareholder to spin off its Asian unit. In this Viewsroom podcast, Breakingviews columnists discuss why the plan deserves short shrift. Also, the decision by oil giants to limit production will win few friends.

SlimFast maker could be tasty swig for Nestlé

4 May 2022

An activist wants Irish protein powder seller Glanbia to break up. Listing its consumer unit in the U.S. could double its 3 bln euro value, but would take time and carries risk. That opens the door to a cash-rich buyer like the Swiss giant, which is bulking up its health lines.

Breakup opposition will smoke out AGL’s C-suite

3 May 2022

A lacklustre plan to split coal power from the retail business is sputtering after Atlassian co-CEO Mike Cannon-Brookes grabbed an 11% stake and vowed to vote no. It leaves boss Graeme Hunt and his team vulnerable. Their exit would open the door to a fresh takeover approach.

Italy’s financial order repels attack on Generali

29 Apr 2022

Mediobanca-backed CEO Philippe Donnet overcame opposition from investors with 30% of the $30 bln insurer to win a third term. That preserves a key financial link with the merchant bank. Donnet now has to deliver on his growth plan. The rebel investors will keep him on his toes.

Capital Calls: Amazon and consumers

29 Apr 2022

Concise views on global finance: People are spending more amid price hikes, while the e-commerce giant struggles with them.

How to return control of companies to their owners

28 Apr 2022

Investors used to argue that companies exist to maximise profits. Now they want executives to consider environmental, social and governance issues. The danger is that money managers impose their priorities, Edward Chancellor says. But there are ways to give ultimate owners a say.

Just Eat investors are stuck with its founder

27 Apr 2022

Some shareholders want to oust the Dutch takeaway group’s finance chief and supervisory board. Yet they have no obvious replacement for CEO Jitse Groen, architect of its disastrous U.S. expansion. It exposes the limits of investors’ ability to challenge powerful entrepreneurs.

Nielsen activist stand is tough to deliver

19 Apr 2022

WindAcre's resistance to the $10 bln sale of the TV-ratings group pits it against buyer and more prominent agitator-investor Elliott. WindAcre is putting its money where its mouth is, but confusing tactics and a demand for an absurd payoff make its campaign look flaky.

Atypical bear hug should kickstart Toshiba bids

1 Apr 2022

The hostile tactic usually involves pressuring a target with a generous offer. In this case, activist investor Effissimo and buyout shop Bain are squeezing the Japanese conglomerate with an artful display of their desire for a deal. It’s getting harder to avoid running an auction.

Carl Icahn is attempting to rewrite his legacy

30 Mar 2022

From a favorable documentary to campaigns criticizing how McDonald’s and Kroger treat pigs, the activist is crafting his final chapter. Icahn changed the course of many companies and his investment prowess is undeniable. But a full evaluation of his impact demands a broader lens.

Generali investors better off with devil they know

30 Mar 2022

A rebel billionaire is vying for control of the 190-year-old insurer, a linchpin of Italian finance. Francesco Caltagirone promises higher returns and bolder M&A than under CEO Philippe Donnet. Fuzzy targets and slowing growth should make shareholders wary of switching horses.