« Among practitioners, it is a customary cliché to say that all proxy contests—just like all trials—are unique and idiosyncratic. There is some truth to that easy generalization, but it also misses the forest for the trees. Some obvious truths stand out in the recent battle between Trian Fund Management and DuPont that will apply to […]

« U.S. businesses, feeling heat from activist investors, are slashing long-term spending and returning billions of dollars to shareholders, a fundamental shift in the way they are deploying capital. Data show a broad array of companies have been plowing more cash into dividends and stock buybacks, while spending less on investments such as new factories and […]

« U.S. businesses, feeling heat from activist investors, are slashing long-term spending and returning billions of dollars to shareholders, a fundamental shift in the way they are deploying capital. Data show a broad array of companies have been plowing more cash into dividends and stock buybacks, while spending less on investments such as new factories and […]

[ … ] « Dans l’éventualité où l’examen des programmes, des processus et des structures ne permettrait pas de dégager les sommes requises en matière de contrôle des dépenses, le gouvernement n’aurait pas d’autres choix, en l’absence de hausses d’impôt, que d’envisager de vendre des actifs. Les revenus touchés par la vente de ces actifs […]

« Martin Lipton is a founding partner of Wachtell, Lipton, Rosen & Katz, and this post is based on a Wachtell Lipton memorandum. The post puts forward criticism of an empirical study by Lucian Bebchuk, Alon Brav, and Wei Jiang on the long-term effects of hedge fund activism; this study is available here, and its results […]

« A watershed moment is coming for shareholder activism and corporate governance generally, as the proxy contest brought by Trian Management Fund, seeking effectively to break up DuPont, enters its final stages (with the vote being less than a month away). Technically, the contest is to elect four Trian Fund nominees to the DuPont board, but, […]

« La planète boursière renoue avec la peur de l’exubérance. Faut-il y voir l’effet déstabilisant d’une Banque centrale européenne inondant le marché d’argent facile ?​ Ils sont plus nombreux parmi les grands de la finance à reprocher aux entreprises de n’avoir d’yeux que pour l’enrichissement immédiat de leurs actionnaires. Elles sont accusées de se soumettre trop […]

« Despite the continued support of attacks by activist hedge funds by the Chair of the SEC, and many “Chicago school” academics who continue to rely on discredited statistics, there is growing recognition by institutional investors and prominent “new school” economists of the threat to corporations and their shareholders and to the economy of these attacks […]

 » U.S. fertilizer producer Mosaic Co boosted its chief executive officer’s pay last year by more than $5 million as a reward for slashing costs and jobs, a regulatory filing shows. Construction of excess potash capacity and fiercer competition have pressured the sector, and leading North American producers Mosaic, Potash Corp of Saskatchewan and Agrium […]

 » L’Institut sur la gouvernance d’organisations privées et publiques (IGOPP) a dévoilé une étude sur les fonds activistes à l’occasion de la Grande soirée de la gouvernance, le 1er avril. Le principal constat est «qu’en général, les interventions des fonds de couverture activistes visent des fins non utiles à la société, souligne Yvan Allaire, président […]

[…] M. Card a tenu à rappeler que d’autres pays, dont les États-Unis et le Royaume-Uni, ont une approche différente dans les affaires de corruption. «Les partenaires économiques du Canada concluent des accords assortis de conditions [avec les entreprises fautives], ce qui permet aux gouvernements d’obtenir ce qu’ils recherchent, c’est-à-dire d’envoyer le bon message tout en […]

« But it’s no joke to Yvan Allaire, Executive Chair at the Institute of Governance, who believes The Economist is running infomercials for activist hedge funds: On a topic requiring sober, balanced coverage, The Economist cuts logical corners, tramples contrary evidence, ignores a vast store of scholarship, and conjures up an empirical “study” to produce […]

« Yet companies, boards, and other investors should keep in mind that shareholder activism is often merely a tactic in a self-interested investment strategy. Shareholder activists such as hedge funds typically are pursuing short-term financial gain at the expense of long-term shareholders and stakeholders. These funds welcome the support of academics and theorists who argue that […]

Financial Activism « Over the past three years, the number and intensity of financial activism initiatives has increased. The ongoing debate on the wealth effects of hedge fund activism is worth following and is well-covered on Harvard’s corporate governance blog (blogs.law.harvard.edu/corpgov). Although financial activism may return immediate wealth to some shareholders through the sale of […]

 » Yvan Allaire and Francois Dauphin are back with another critique of Bebchuk et al.’s claims about the merits of hedge fund activism: Bebchuk et al. have produced a new version of their paper The Long-Term Effects of Hedge Fund Activism (December 2014) to be published in the June 2015 issue of the Columbia Law Review. In […]

Les entreprises cotées ont toujours eu à subir les attaques des actionnaires activistes. Ce qui est nouveau en revanche, c’est le nombre de plus en plus élevé de ces batailles (de 27 en 2000, elles ont été de 320 en 2014), et la présence de fonds alternatifs, les gérants de « hedge funds », aux côtés de […]