Activist Updates
Hedge funds and managers are building stakes, starting proxy battles, and taking profits. Here’s the latest in activist investor news.
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Activist fund Jana Partners has struck a deal with Bloomin’ Brands (NASDAQ: BLMN) on board seats. The two firms agreed to add two new independent directors to the restaurant company’s board. Bloomin is best known as the owner of Outback Steakhouse. The activist fund, which owns 9% of BLMN, has been pushing for changes to the board due to falling sales at the company.
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“Activist Wolf Packs” Could Close in on European ESG Laggards
The A&M Activist Alert is an analysis and predictor of shareholder activism in Europe. A&M used ESG ratings by Refinitiv of 1,300 European companies to segregate them into a ranking of four quartiles. Going back to 2017, A&M looked at each quartile to determine how many of its companies faced an activist attack. A total of 62% of activist targets across Europe since 2017 fall into the bottom two ESG quartiles, observed the study. Companies in these groups are, on average, 24% more likely to face an activist campaign.
Christopher Hohn: Activist Manager, Climate Warrior
Sir Christopher Hohn, the head of activist fund TCI, has demanded the companies improve their pollution disclosures. Those boards that fail to meet his demands will not receive his vote. In fact, he’ll vote against directors on issues like carbon emissions.
Tom Barrack Faces Activist Challenge at Colony
Tom Barrack is facing new activist pressure from Blackwells Capital after a period of underperformance.
The three-way merger with two NorthStar REITs has, to be kind, not worked well at all for Colony.
The REIT has seen its stock price reduced by two-thirds over this time.
Activist Hedge Fund Starboard Value Takes Stake in CVS Health
Starboard Value Buys a Stake in the Pharmacy Benefits Giant CVS Health has a new activist investor circling around it. The Wall Street Journal reported Monday that Starboard Value has purchased a stake in the pharmacy and health benefits giant. Reports indicate that Starboard has a small stake in CVS and that management has already discussed…
Who’s Afraid of Carl Icahn? Not Putnam
Putnam Investments is on the opposite side of Carl Icahn’s massive short bet against mall owners’ debt. So is Alliance Bernstein. Putnam says Icahn is wrong to think malls are on death row. Putnam’s view stems from their fundamental observation that commercial real estate vacated in malls by retailers is finding takers. Only, the new tenants are service providers such as movie theaters, yoga schools, offices, even residences.
Hedge Fund Firefly Demands Board Seat at Gulfport Energy
Firefly Value Partners is taking the activist approach with Gulfport Energy. The hedge fund has demanded a seat on the board of directors at the energy firm.
Casino “Whale” Caesars in Eldorado’s Net: Shareholders Green Light Their Merger
Thanks to Carl Icahn’s activism, and an $8.58 billion acquisition kitty, Eldorado is in the driver’s seat in US casino operations. It will soon have Caesars in its fold. After completion of the transaction in 2020, Eldorado will be the biggest casino operator in the U.S.
Study: Activist Investing Spurs Innovation in Targeted Companies
A research study by Columbia Business School’s Professor Wei Jiang shows that activist investors help the cause of innovation in their companies. Prof Jiang is the Arthur F. Burns Professor of Free and Competitive Enterprise at the University. Third-party interventions can actually increase the longevity and sustainability of a company’s innovation.
Hawaiian Electric to Activist Fund: We’re Not Looking Outside for New Leader
Hawaiian Electric slammed activist hedge fund ValueAct this week. The company responded to the activist fund’s call to locate a successor for its President and CEO Constance Lau. ValueAct has a $50 million stake in the company.
Carl Icahn: Gee… Occidental Petroleum is a lot like WeWork
Occidental Petroleum took a shot from activist investor Carl Icahn in more ways from one. Icahn slashed his stake in the company and threatened to launch a proxy fight.
Elliott Management Supports Split of Nielsen Holdings
Nielsen Holdings has announced plans to split itself into two separate public companies. The plan – backed by Elliott Management – will unlock shareholder value.
Praesidium Investment Management Pushes for Sale of Instructure
Praesidium Investment Management is the latest firm to push for a sale of education software firm Instructure. The activist hedge fund has reportedly found “dozens” of private equity or other strategic buyers.
Emerson Electric Concedes to Activist Fund, Appoints Mark Blinn to Board
Emerson Electric, a U.S. factory automation company, has appointed Mark Blinn to its board of directors.
Inmarsat Rejects Oaktree’s Push to Delay Court Hearing
Oaktree Capital had requested a delay to a takeover court hearing around the takeover of Inmarsat. The British satellite company, however, rejected the delay for the November 12 meeting. Oaktree wants greater insight into the status of Inmarsat’s U.S. spectrum holdings.
Berkshire Hathaway Beats Earnings Despite Global Economic Woes
Berkshire Hathaway reported earnings on Saturday (more on why in a moment). Warren Buffett’s firm announced that profits topped Wall Street expectations thanks to resilient consumer spending. The firm’s success came despite ongoing trade disputes between the U.S. and China and threats of new tariffs.
Francesco Trapani to Launch Bluebell Active Equity Fund
Francesco Trapani will launch a hedge fund alongside two advisors of Elliott Management. The former head of Italian jeweler Bulgari SpA is partnering with Marco Taricco and Giuseppe Bivona to start the Bluebell Active Equity Fund. The fund will launch Nov. 11 with roughly 50 million euros ($55.7 million) under management.
CBL Properties Settles with Activist Investor
CBL Properties stock rallied nearly 10% this morning after it reached a settlement with Exeter Capital investors. The real estate giant has added Exeter president Michael Ashner and Carolyn Tiffany to its board of directors.
Nelson Peltz Sells 2.1 Million Shares of P&G Stock
Activist investor Nelson Peltz has sold about $267 million in Proctor & Gamble stock over three days. The CEO of the Trian Fund dropped about 2.1 million shares.
AT&T Defuses Hedge Fund Elliott Management Pressure With Three-Year Plan
Activist hedge fund Elliott Management took aim at AT&T Corporation in September. Elliott had proposed cost cuts, divestment of certain businesses, and a freeze on further acquisitions. Now, the telecom giant has pushed back with a three-year plan to diffuse Elliott’s activist pressures.
Dan Loeb’s Third Point Holds a $700 Million Stake in EssilorLuxottica
Third Point, the New York-based activist hedge fund run by Dan Loeb, has built up a $700 million stake in Ray-Ban maker EssilorLuxottica. It revealed this in its third-quarter investor letter.
The fund also said it saw plenty of potential for growth and profits at EssilorLuxottica, the world’s largest eye-wear company.
AT&T and Activist Elliott Management Said to Be in Talks
According to the sources, AT&T and Elliott Management have held discussions, and there is an ongoing dialogue. The two parties may likely agree as early as this month, the Wall Street Journal said. However, there is still a risk that talks could break down.
D. E. Shaw Targets Emerson Electric
Emerson Electric, the industrial conglomerate and Fortune 500 company, is in the cross-hairs of hedge fund D.E. Shaw.
Richard Grossman: Preparing for Shareholder Activism On Your M&A Deal
Richard Grossman, a partner in Skadden’s M&A practice, has advice on tackling activist hedge funds during an M&A transaction.
REIT CBL & Associates Attracts Activist Investor
Beleaguered mall REIT CBL & Associates Properties (CBL) has attracted an activist investor. Mall REIT CBL & Associates could face pressure in the board room. Noted distressed debt and restructuring investor Michael Ashner has filed a 14D stating that he now owns 5.97% of the REIT. In the filing, Ashner says his firm “purchased the…