Activist Investors' Sights Set on Corporate Europe After Record YearActivist 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. 09 January 2024
Svea Herbst-Bayliss and Anousha Sakoui of Reuters penned an article on the increased levels of activism in Europe and that activist investors are expected to launch more and bolder campaigns for change among European companies in 2024.
Europe was for years something of a backwater for activists as a company’s management often had closer ties with local unions, sometimes with governments and often with big investors, than in other parts of the world, giving them more protection. Disagreements were often hashed out behind closed doors.
But growing investor activism could force more costly and time consuming strategic stand-offs as traditional investors, such as Deka Investment, join corporate agitators like Elliott Investment Management in openly demanding major changes.
“In the past, investors in Europe shied away from calling for something so drastic,” said Andrew Brady, who advises companies and activists as a Director at SquareWell Partners. “But now active portfolio managers are more willing to apply pressure in Europe,” he added.
The full article can be accessed here.
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Large asset managers no longer hesitate to support activist campaigns, which still remain mainly led by hedge funds