Activist Hedge Fund Trian Sets Sights on Allstate Insurance
Activist hedge fund Trian Fund Management has acquired a stake in Allstate Corp, putting pressure on CEO Tom Wilson to turn the struggling insurer around after five quarters of losses attributed to natural disasters. Allstate has hired investment bankers to advise on how to handle Trian, whose exact stake and plans for the company remain unknown. Allstate's stock price jumped 6% on the news, as the company has underperformed due to losses in property and auto insurance. Trian, which recently overhauled its top ranks, is also engaged in a high-profile battle with Walt Disney.