All articles tagged with #activist investor
Shares of Norwegian Cruise Line (NCLH) rose about 11% after Elliott Investment Management disclosed a stake above 10%, signaling a potential turnaround and even a proxy fight to push changes; the activist notes underperformance versus peers and hints at leadership and financial-driven strategies as rivals rebound post-pandemic.
David Webb, Hong Kong’s most vocal activist investor who unearthed corporate malfeasance and spurred governance reforms, died in Hong Kong on Jan. 13 at age 60 from metastatic prostate cancer. A former Barclays executive turned independent investor, Webb built the webb-site.com platform, led investigations (notably the Enigma Network) that triggered regulatory probes, and earned a board seat at HKEX; he was also honored as a Member of the Order of the British Empire for anti-corruption work.
Lululemon founder Chip Wilson has proposed a board overhaul by nominating three new directors to bring visionary leadership and restore confidence amid the company's struggles with declining shares, increased competition, and leadership changes, while activist investor Elliott Management also targets the company's future direction.
Lululemon founder Chip Wilson has initiated a proxy fight by nominating three independent directors to the company's board, criticizing recent leadership changes and seeking to influence the appointment of a new CEO amid declining shares and increased competition, with support from activist investor Elliott Management.
Pressure is mounting on Target as an activist investor increases its stake in the company, signaling potential changes or challenges for the retail giant.
Kimberly-Clark's proposed merger with Kenvue faces skepticism due to Kenvue's weakening sales and legal liabilities, leading to a significant stock decline and potential activist opposition, raising doubts about the deal's approval and completion.
An investor group including Jana Partners and NFL player Travis Kelce has acquired about 9% of Six Flags and plans to engage with management to improve the company's performance amid significant losses and declining attendance, with shares rallying on the news.
Medtronic's stock fell over 4% after announcing new board appointments to appease activist investor Elliott Management, despite reporting a strong fiscal first quarter with sales beating expectations and raising its profit outlook. The company added new directors with extensive medical device experience and is focusing on growth and operational improvements, which Elliott believes will lead to sustained earnings growth.
Activist investor Barington Capital has acquired a stake in Macy's and is urging the retailer to explore strategic options for its Bloomingdale's and Bluemercury brands, as well as to establish a separate real estate unit. Barington, in partnership with Thor Equities, believes these moves could significantly increase Macy's market value, which currently stands at $4.6 billion. The investors are also advocating for reduced capital expenditures and substantial stock repurchases, while seeking board representation. Macy's has faced similar pressures from other activist investors in the past.
Activist investor Barington Capital, in partnership with Thor Equities, has taken a stake in Macy's, urging the company to cut spending, consider selling its luxury brands, and reassess its real estate portfolio. This marks the fourth activist push at Macy's in a decade, as the retailer struggles with declining sales and store closures. Barington suggests Macy's could benefit from share buybacks and real estate restructuring, valuing its property assets between $5 billion and $9 billion. Macy's plans to close about 150 stores by 2027 while investing in its stronger brands.
Elliott Management has acquired a $5 billion stake in Honeywell International, advocating for the industrial conglomerate to split into two separate businesses: its aerospace division and its automation division. This move aligns with Elliott's strategy of making concentrated investments, as seen with its stakes in Texas Instruments and Southwest Airlines. Honeywell's management is open to engaging with Elliott, as the company has already been simplifying its portfolio under CEO Vimal Kapur. The proposed breakup follows a trend among industrial conglomerates like GE and 3M, which have spun off divisions to enhance focus and valuation.
Activist investor Elliott Management has acquired a $5 billion stake in Honeywell and is advocating for the industrial conglomerate to split into two separate companies, focusing on its Aerospace and Automation divisions. Elliott argues that this breakup could increase Honeywell's value by up to 75% over two years, citing underperformance and a complex corporate structure as reasons for the move. This push aligns with a broader trend of dismantling conglomerates, as seen with companies like General Electric. Honeywell has acknowledged Elliott's perspective and is open to discussions.
Nissan's shares surged by up to 20% after Effissimo Capital Management, a Singapore-based activist investor, took a stake in the company. This move comes amid Nissan's financial struggles, including a recent profit downgrade and job cuts. Effissimo is known for its campaigns against major Japanese corporations like Toshiba. The investment has sparked speculation about potential takeovers or industry shake-ups, as Nissan faces intense competition from Chinese electric car manufacturers. Effissimo's involvement is seen as an attempt to exert more pressure on Nissan, particularly regarding its relationship with Nissan Shatai.
Activist investor Starboard Value has acquired a 6.5% stake in Match Group and is urging the company to improve margins through cost cuts and product innovation or consider going private. Match Group's stock surged 8% following the news, despite a 12% decline this year and an 80% drop from its 2021 peak. Starboard's Jeff Smith believes CEO Bernard Kim can lead the necessary changes but emphasizes the need for margin improvements and potential share buybacks. Other activists, including Elliott Management, have also pressured Match Group recently.
Activist investor Carl Icahn has acquired a 2-3% stake in Caesars Entertainment, causing a minor stir. Despite his history of pushing for corporate changes, Icahn has indicated no immediate plans to shake things up at Caesars. The stock purchase, valued between $154 million and $230 million, has led to a 15% rise in Caesars' stock price.