Shareholder Activism

Toshiba task becomes more Sisyphean

24 Mar 2022

The Japanese conglomerate’s shareholders rejected management’s breakup plan and a hedge fund proposal to solicit buyout bids. It augurs fresh fighting over the board and the strategy. Outside agitators have reason for optimism but the long fight keeps eating away at returns.

Anaplan deal hints at floor under cloud valuations

21 Mar 2022

The business software company is selling to Thoma Bravo for $10 bln. Recent market carnage had trashed once high-flying cloud stocks - Anaplan's by a third or more. If cash-rich private equity firms start picking up companies in the sector, it could stem the decline.

Nielsen bid rejection deserves bad viewer response

21 Mar 2022

The video-ratings group dismissed a $9 billion bid from Elliott and others, a move that sent its shares down sharply. It's OK to hold out for a higher price, and that could be the endgame. But the standalone case for Nielsen is too optimistic, and too late, to be convincing.

Toshiba board rebel mainly helps governance cause

17 Mar 2022

Director and ex-hedgie Raymond Zage will vote for a proposal urging the company to consider buyout bids and share info with investors. He already backed a breakup, opposed by many funds. Even if offers underwhelm, listening to shareholders and opening up would be a good step.

Toshiba’s turmoil undermines its breakup plan

11 Mar 2022

Leading proxy advisers aren’t backing the Japanese conglomerate’s plan to split in two, saying it needs first to fix internal chaos before setting strategy. Activists want the $17 bln firm to study a full sale. If insiders lose the upcoming vote, all options have to be considered.

Capital Calls: Americans accept inflation for now

10 Mar 2022

Concise views on global finance: U.S. prices rose a whopping 7.9% year-on-year in February. Even so, Russia’s invasion of Ukraine has improved President Joe Biden's approval ratings. It may not last.

Activist sets up Australia’s AGL for a sick burn

28 Feb 2022

Snowcap wants the power company to shelve its demerger, fend off any more lowball offers from Brookfield and adopt the latter’s plan to ditch coal. That will ultimately add pressure on AGL’s underperforming board to sell and might even result in a higher price from its suitor.

7-Eleven clash shapes up to be Mt. Fuji moment

22 Feb 2022

Emboldened by its success in Japan, normally discreet ValueAct is publicly chiding Seven & i’s structure and governance. The $44 bln retailer has dug in after previously fending off Dan Loeb. Winning over local fund managers would help a bubbling flow of pushy investing to erupt.

Hasbro breakup is the monster under the bed

18 Feb 2022

An activist wants the toymaker to spin out the division that holds card game “Magic: The Gathering”. The alternative is for incoming CEO Chris Cocks to revive a plan to become a Disney-like media empire. Cocks deserves a chance, but the allure of a carve-up sets him a high bar.

Zendesk’s best M&A strategy starts with failure

14 Feb 2022

The software firm’s unpopular $4 bln bid for SurveyMonkey’s parent has pushed down its stock, irked activists and provoked a $16 bln opportunistic private equity bid. Zendesk’s shareholders can still vote down its deal. Doing so might secure a higher price for their own shares.

Nelson Peltz board swap leaves unresolved conflict

2 Feb 2022

The activist gave up a board seat at Invesco to take one at rival Janus Henderson, while holding stock in both fund managers. If the companies decide to merge, Peltz is a conflicted broker with inside knowledge. Even a good suggestion becomes unnecessarily controversial.

Elliott double dips with pandemic fallen angel

31 Jan 2022

The activist is buying Citrix for $16.5 bln after shaking it up starting in 2015. Management turmoil, an ugly transformation, and missed pandemic opportunities left the software firm vulnerable. Plans to merge it with a similar enterprise company give Elliott a solid second chance.

Vodafone intruder adds hope to activist toolbox

31 Jan 2022

Shareholder Cevian Capital lacks obvious levers to boost the 36 bln pound telco’s performance. Consolidation in markets like Spain, Italy and the UK would lower costs and improve pricing. But success depends on competition watchdogs dropping their opposition to fewer operators.

Elliott flub hurts Hong Kong investor activism too

31 Jan 2022

The pushy shareholder has thrown in the towel on its seven-year battle with Bank of East Asia. It looks like a costly defeat for Paul Singer’s firm. That an industry titan failed to break through family ties so prevalent in the city shows the hazards for similar campaigns.

Pushy 7-Eleven investors are welcome inconvenience

27 Jan 2022

The Japanese owner of the Slurpee-selling chain is under growing pressure to spin off struggling units and overhaul the board. There’s a risk of a frustrating battle like the one dragging out at Toshiba. A more receptive approach, however, could deliver Olympus-like results.

Capital Calls: TCI’s railroading tactics

26 Jan 2022

Concise views on global finance: The fund run by Chris Hohn has settled with Canadian National after a messy battle for the board.

Peltz’s Unilever fight is easy; winning is harder

24 Jan 2022

The investor who took on Procter & Gamble has bought a stake in its European rival. Sluggish growth and CEO Alan Jope’s failed bid for GSK’s consumer arm give Unilever shareholders more reason to welcome an activist. Reshaping the company to boost performance requires more work.

Peloton activist has right diagnosis, dubious cure

24 Jan 2022

Blackwells Capital wants CEO John Foley out and the $9 bln online fitness firm put on the block. An 80%-plus slump from the home-exercise group's peak stock price confirms a squandering of its pandemic advantage. But a big-name buyer like Apple or Disney is an improbable answer.

Capital Calls: Activist investors, P&G, Rivian

19 Jan 2022

Concise views on global finance: Underperforming UK stocks lure cage-rattling shareholders to London; sickness and germaphobia boost the $380 bln company’s earnings: And Ford Motors and Amazon.com book big gains on investments in the electric carmaker as its stock tumbles.

Capital Calls: Dan Loeb’s gadfly circles again

18 Jan 2022

Concise views on global finance: The U.S. activist’s activists up the ante with call for independent director.