Activist investors are on the march
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Activist investors are on the march, launching a series of new campaigns in recent days.
Why it matters: Today's shareholder activism often leads to tomorrow's deals, or sometimes tries to kill existing merger agreements.
Driving the news: Starboard Value wants News Corp. to separate its digital real estate business. Engaged Capital wants North Face and Vans owner VF Corp. to cut costs and make board changes. Ancora is objecting to Forward Air's planned takeover of Omni Logistics.
- There's also Elliott Management disclosing nearly a 14% stake in E2open, and reportedly considering its own takeover of the SaaS company, and Nelson Peltz's Trian Fund Management building a position in insurer Allstate.
- Plus, the success of Oasis Management with Wagamama owner The Restaurant Group, which agreed to be bought by Apollo Global Management, and Carl Icahn suing Illumina's board for breaches of fiduciary duty.
By the numbers: Barclays reports that nine 13Ds were filed with the SEC on Monday and Tuesday of this week, each for companies with at least $500 million in market cap.
- That's the highest 48-hour volume ever, per the bank's shareholder advisory group.
Behind the scenes: Each situation is unique, but the overall trend seems to be driven by falling public equity values and broader economic uncertainty.
- The S&P 500, DJIA and Nasdaq all are down over the past month, although still up on the year.
- At the packed 13D Active-Passive Summit yesterday at the Pierre Hotel in New York City, there was a sense that activist activity should continue to pick up.
- Keith Meister, founder of Corvex Management and a former portfolio manager for Carl Icahn, said from the stage that he believes shareholder activism is becoming normalized. "The lines are blurring," Meister said. "I hope in 15 years, we're not using the term 'activist' anymore."
Look ahead: The director nomination window for most public companies is in Q1, and don't be surprised if the activist uptick results in a flurry of proxy season activity next year.
