Activism Archive

Apr 06, 2020
Focus on stakeholder value amid Covid-19 uncertainty, investor group says
A group of 251 long-term investors representing more than $6.4 tn in assets under management has urged issuers impacted by Covid-19 to introduce measures that contribute to maintaining economic health and minimizing downside risk as the pandemic continues to spread around the world.  In an open letter from the Interfaith Center on Corporate Responsibility (ICCR), the signatories – led by Domini Impact Investments, the New York State Comptroller and ICCR – urge ...
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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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Nov 28, 2019
Last word: Unlocking hidden value in GreenLandCorp
To whom it may concern First of all, let me congratulate you on a fantastic company. From its Elephant Foot Glacier to the Qorlortorsuaq waterfall, it is a monument to a pristine corporate vision, one we here at US&P LLC are very enthusiastic about. But we are even more enthusiastic about the opportunities an acquisition of your fine firm would provide for your existing stakeholders – local communities included, naturally – and our shareholders. We ca...
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Nov 07, 2019
Canadian shareholder activism increases in scope, says Laurel Hill
Shareholder activism in Canada is evolving and becoming more sophisticated. While down in terms of volume, it has ‘grown in prominence, scale and momentum,’ according to Laurel Hill’s fifth annual Trends in Corporate Governance report. So far in 2019, 44 companies have been subject to activist demands in Canada, compared with 69 in all of last year. ‘When people think of activism, they generally think of board battles,’ says David Salmon, president ...
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Oct 22, 2019
‘Anyone can be an activist now,’ warn Canadian governance advisers
Shareholder activism hit record highs in Canada during 2018 and, while the activity has trailed off somewhat this year, speakers at the inaugural Corporate Secretary Think Tank – Canada cautioned that there is an increase in first-time activists. In 2018 there were 78 activist campaigns in Canada, 57 of which had taken place by July, according to data from Activist Insight. In 2019, 28 companies had been targeted by July – marking a 40 percent year-on-y...
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Oct 18, 2019
The week in investor relations: Trade war is ‘new normal’, fund managers avoid unicorns and companies under more pressure over climate change
– A majority of investors think the US-China trade war is the ‘new normal’, according to a survey of global fund managers conducted by Bank of America Merrill Lynch, reports Marketwatch. The survey finds that 43 percent of respondents think there is no end in sight to the trade dispute, compared with 36 percent who think it will be resolved bef...
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