Activism Archive

Jun 24, 2020
Two thirds of investors open to working with activists
Almost two thirds of investors say they are open to talking to activist investors about a company they have a position in, according to recent research from IR Magazine. While many companies continue to experience volatile share prices and balance sheet concerns – with a significant increase in the number of companies adopting poison pills this year – investors are more likely to support an activist campaign now than they were three years ago. T...
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May 29, 2020
AGMs: Pandemic provides proof of popularity
We have become used to living in lockdown. We have become used to birdsong replacing traffic noise, to working from home, to virtual meetings. We have become used to Webex, to staying in, to social distancing. Many are predicting that the changes thrust upon us by Covid-19 could have a lasting impact on the world of business and work: business travel, large offices and meetings are set to shrink as professionals around the world weigh up the costs and benefits of adopting ...
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Apr 29, 2020
Shareholder Activism report now available
IR Magazine has released a new report examining attitudes and practices toward shareholder activist campaigns. The report looks at this issue from three key viewpoints: IROs, buy-side investors and sell-side analysts. Findings are based on responses from the IR Magazine Global IR Survey 2019 and the IR Magazine Global Investor Survey 2019, both conducted in the latter half of last year. This report examines how companies respond to activist campaigns and wh...
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Feb 13, 2020
Fed updates rule on activists taking stakes in banks
On January 30, the Fed finalized a rule that relaxes requirements to allow activist investors to take larger ownership interests in banks and maintain greater board representation without triggering control under federal banking law. Control is a critical concept as investors controlling banks are subject to extensive Fed oversight and stricter regulation.   The Fed’s rule provides greater clarity to investors by outlining the types of non-controlling s...
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Feb 12, 2020
Dealing with activist directors with an M&A agenda
This past year, more than ever, activist investors called for the companies they targeted to put themselves up for sale or divest assets. A record 99 campaigns launched in 2019 pushed an M&A-related agenda, according to Lazard’s shareholder advisory group. This represents 47 percent of activism campaigns launched last year, the highest proportion since Lazard has tracked this data. According to Activism Insight, roughly 60 percent of M&A-related c...
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Jan 29, 2020
Shareholder activism fuels board culture change in Asia
Issuers in Asia are more likely to seek settlements with activist investors than they were five years ago, due to activists’ increasing success rate in contested meetings across the region, according to data from Activist Insight. Shareholder activists gained 40 board seats from 32 contested meetings in 2019, compared with 25 seats from 10 meetings in 2014, the study finds. Board battles between issuers and activist shareholders have gradually gone up since then, ...
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Dec 18, 2019
Publishing, media and telecoms companies at highest risk from activists, notes research
Publishing, media and telecommunications are the sectors most vulnerable to activist investors, according to new research. The three industries score highest in a new ranking that assesses companies according to their susceptibility to activist campaigns. Developed by FTI Consulting, the scoring system considers more than 25 different areas grouped into four broad categories: governance, total shareholder return, balance sheet and operating performance. ...
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Dec 02, 2019
IR Magazine Winter 2019
A light in the dark I recently spoke to Jim Toes, CEO of the Security Traders Association, about how the unprecedented number of issuer letters sent to the SEC about the access-fee pilot last year could be a sign that IR teams are getting more up to speed on market structure issues. He cited the increase in trading activity on dark pools as another issue IR teams need to be aware of. ‘Understanding where your stock is traded, why and b...
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