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.
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.
Hedge fund Elliott Management has taken a $2.5 billion stake in Texas Instruments, urging the company to adopt a more flexible capital expenditure strategy to improve free cash flow. Elliott's letter suggests that Texas Instruments' current rigid capex plan has significantly reduced free cash flow and negatively impacted shareholder returns. The hedge fund proposes a "dynamic capacity-management strategy" to better align with market demand and enhance financial performance. Texas Instruments is reviewing the letter and remains focused on decisions that benefit all shareholders.
Match Group adds two new directors, Laura Jones and Spencer Rascoff, to its board in a deal with activist investor Elliott Management, following a "constructive" dialogue resulting in an information-sharing agreement. Elliott, known for board shakeups at other companies, believes in Match Group's potential for value creation despite its struggles with leadership turnover and declining paying users. The exact size of Elliott's position and its specific plans for a turnaround remain unclear.
Mitsui Fudosan's shares reached a record high after reports of U.S. activist investment firm Elliott Management urging the company to initiate a $6.74 billion stock buyback program and sell down its $3.6 billion stake in Oriental Land, the operator of Tokyo Disneyland. The pressure from Elliott signals a shift in corporate Japan's approach to balance sheets, with experts debating whether the proceeds should be used for share buybacks or future growth projects. As a result, Mitsui Fudosan's shares surged while Oriental Land's shares fell 2.2%.
Elliott Management, known for aggressive governance tactics, has acquired a 13% stake in Etsy and secured a board seat, aiming to drive value creation and cost-cutting initiatives. Etsy has been facing challenges from low-cost competitors, counterfeit products, and declining sales post-pandemic, prompting the need for strategic changes. The promise of steep cost-cutting from Elliott drove Etsy's stock up 10%.
Activist investor Elliott Management has acquired a roughly 13% stake in e-commerce company Etsy and secured a board seat for partner Marc Steinberg. The news caused Etsy's shares to surge more than 10%. Elliott, known for its successful track record and managing about $59 billion in assets, has been engaging with Etsy for months. The company has struggled recently, laying off 11% of its staff and facing growing competition from Chinese retailers.
Shares of Match Group surged 11% after reports that activist investor Elliott Management had acquired a $1 billion stake in the company, which owns Tinder, Match.com, and other online dating platforms. The company has faced challenges amid the pandemic, with declining Tinder payers and missed revenue expectations. Elliott's involvement is expected to involve engagement with Match management, potentially including board nominations, as the investor has a track record of successful campaigns in other companies.
Crown Castle CEO Jay Brown is retiring, coinciding with activist fund Elliott Management's call for a new chief executive as part of its campaign for improved governance and fiber strategy at the cell tower company. Anthony Melone, a Crown Castle board member, will serve as interim CEO while the board searches for a permanent successor. Elliott, which controls a $2 billion stake in Crown Castle, is also seeking bylaw changes and a review of the company's fiber business, potentially including a sale. Crown Castle, one of the largest communications infrastructure providers in the US, has seen its stock decline over 40% from its 2021 high.
Elliott Management has acquired a $1 billion stake in Phillips 66 and plans to seek up to two board seats, citing the company's underperformance compared to competitors Marathon Petroleum and Valero. The activist investor claims that Phillips 66's focus shift away from its refining segment has led to declining performance and increased operating expenses, causing investor confidence to waver. Phillips 66 stock rose 4.6% following the news.
CNBC's Jim Cramer believes that Constellation Brands' upcoming investor day on November 2nd could be a significant catalyst for the company's stock. This event follows activist hedge fund Elliott Management's disclosure of a stake in Constellation and an information sharing agreement. Cramer suggests that Elliott may push for changes such as divesting the underperforming spirits business or implementing a buyback program. Despite a 3% drop in the stock price following the company's strong earnings report, Cramer views it as a buying opportunity and expects more insights into the company's future prospects at the investor day.
Activist investor Elliott Management has launched a campaign against Goodyear, citing poor margin performance versus rivals, weak board oversight of management, and ill-timed tire distribution deals. Elliott is pushing for a sale or other action on Goodyear's 1,000-plus retail stores and the installation of five new board members. The firm thinks Goodyear could be worth $32 a share under its plan. Goodyear stock rose 20% on Thursday afternoon to $14.10 on news of Elliott's involvement.
Hedge-fund billionaire Paul Singer of Elliott Management warns that financial markets may only be getting started a year into the Federal Reserve's rate hikes and thinks a deep recession and credit collapse will be necessary to purge excesses created by more than a decade of easy-money policies. Singer is not a fan of sweeping banking regulations from the Dodd-Frank Act of 2010, or prolonged market interventions by global central banks in the wake of the 2008 global financial crisis, or cryptocurrencies. He called crypto, "completely lacking in any value," in his WSJ interview. Singer said there may be only a few places for investors to ride out the storm that he sees brewing, such as relatively short-term U.S. government debt and having some gold in portfolios.
Elliott Management has withdrawn its director slate for Salesforce, avoiding a potential challenge to CEO Marc Benioff. The two companies have reached a peace agreement, with Elliott praising Salesforce's commitment to profitable growth. Salesforce's strong financial results and progress on costs have appeased activists.
