2019 – A Developing Year for ActivismFollowing a new report from Activist Insight, activism situations have decreased but are changing. 08 July 2019
A report from ActivistInsight has demonstrated 2019 as a developmental year for activism, which has tempted traditional investors to take tougher public stances and giving optimism for new campaigns in Asian markets.
Activism situations are down some 16% from the same point last year, ActivistInsight’s Josh Black puts it down to uncertainty leading to quick settlements with the number of fights for board seats falling and management successfully defending becoming the norm.
More US activists have been active in the UK so far in 2019, SquareWell Partners’ Ali Saribas attributes the flock of outside activists to the UK on the “depreciation of the pound and the sophistication of the UK capital market.” Ali Saribas also pointed to an increase in the number of contested M&A situations as a percentage of all activist demands, increasing from 11% to 15% as a sign the developing landscape.
You can access the full report here (subscription required).
Activist investors are expected to launch more and bolder campaigns for change among European companies in the year ahead, advisers told Reuters, after a record number in 2023.
AQTION, a subsidiary of SquareWell Partners, published its inaugural study – ‘Stewardship in AQTION’ – which details how the world’s largest 65 asset managers and owners steward their portfolio companies and how they incorporate extra-financial considerations into their investment decision-making processes.
Carl Icahn is preparing for a second board battle at gene-sequencing company Illumina after shareholders elected his candidate, Andrew Teno, to the company’s board and ousted the chairman, John Thompson, in May. Icahn then successfully pushed out former CEO Frances DeSouza in June.