11/13/2025

American Activist Claims IperionX More Dud Than Critical Minerals Gem

Australian Financial Review (11/13/25) Wembridge, Mark

An ASX-listed critical minerals hopeful backed by the Trump administration has halted trading in its shares after an American activist investor alleged there were inaccuracies in its accounts and questioned whether it could commercialize its technology. North Carolina-based IperionX (IPX) is developing titanium extraction technology and has been among the winners of a White House push to secure domestic production of critical minerals, receiving $47 million from the Defense Department to accelerate production. The metal has many military uses, including in the construction of aircraft and warships. Despite operating in the United States, with a titanium, rare earths and zircon mineral sand project in Tennessee, IperionX is listed on the ASX and counts local fund managers Regal Partners and Pengana Capital among its largest shareholders. IperionX had been valued at more than $3 billion in September after the Defense backing was announced, but had slid below $2 billion before its shares entered a trading halt early on Thursday. The halt was put in place after Spruce Point Capital Management published a 93-page research report overnight, raising significant doubts about the company’s prospects. Spruce Point is a New York-headquartered hedge fund that specializes in short-selling, making money when shares fall. “To believe in the IperionX story, you must believe that a small group led by Australian mining executives discovered something that has been overlooked for years by everyone else in the global titanium industry,” Spruce Capital’s research report read, adding that the firm put the “downside risk” for the stock at between 70% and 95%. “We believe that investor expectations are too high, and it faces significant challenges in commercial efforts ... not be fully reflected in its valuation. We also express concerns with the accuracy of its financial reporting.” Spruce Point also said the company’s claims that its titanium extraction technology would revolutionize the industry were exaggerated. There was little “economic rationale for expanding capacity when it has few customer contracts and no historical revenue," the report noted. IperionX has said that its Hydrogen Assisted Metallothermic Reduction technology was more efficient than widely used methods because it is more energy-efficient and produces fewer carbon emissions. According to the company, IperionX is “set to be a leading American titanium metal and critical materials company – using patented titanium technologies to produce high-performance titanium alloys, from titanium minerals or scrap titanium, at lower energy, cost and carbon emissions." “The current management and board of IperionX is associated with one controversial individual and several public companies that have broadly failed to deliver lasting value for shareholders,” Spruce Point said. “Notably, there is a sharp overlap of IperionX executives with Piedmont ... which faced two short seller reports alleging it was a stock promotion connected to Levi Mochkin, who is permanently banned from financial services in Australia for alleged market rigging transactions.” The firm said it was not alleging IperionX had engaged in “any improper conduct, and investment in the same entity does not necessarily indicate an active business partnership or endorsement of Mr Mochkin’s past conduct." IperionX acknowledged its trading halt was because of the short-selling report, and said it was “forming an appropriate response." “The company is unable to discuss matters relating to the report until the compliance obligations have been satisfied,” the company told investors. IperionX chief executive, Taso Arima, also founded Piedmont Lithium, another ASX-listed producer which had projects in North America and Africa and was backed by the U.S. government. Piedmont was targeted by short sellers in 2023, accused of inflating its outlook. In August, Piedmont merged with Sayona Mining to form Elevra Lithium. At the time of the short seller accusation, Piedmont had a market capitalization of around $1.5 billion; Elevra was valued at $838 million during trade on Thursday. After touching a 12-month low of $2 in April, IperionX shares peaked above $9 in October, just before the U.S. President Donald Trump inked an $8.5 billion deal with Australia to promote rare earths and critical minerals production. In September, IperionX said some of the $47 million of U.S. government cash would be used to scale up its titanium manufacturing capacity at its hub in Virginia, with the aim of producing 1400 tonnes per year.

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11/12/2025

White House Explores Rules That Would Upend Shareholder Voting

Wall Street Journal (11/12/25) Pitcher, Jack; Glazer, Emily

The White House is exploring new measures to curb the influence of proxy advisers and index-fund managers, wading into a hot-button debate raised by high-profile CEOs including Elon Musk and Jamie Dimon in recent months. Trump administration officials are discussing at least one executive order that would restrict proxy-advisory firms such as Institutional Shareholder Services and Glass Lewis, people familiar with the matter said. That could include a broad ban on shareholder recommendations or an order blocking recommendations on companies that have engaged proxy advisers for consulting work, the people said. Officials also are exploring limits on how index-fund managers are allowed to vote, seeking to curtail the power of such behemoths as BlackRock (BLK), Vanguard Group, and State Street (STT), the people said. These three together own on behalf of clients roughly 30% or more of many of the biggest U.S. publicly traded companies. One measure being discussed would require these index-fund managers to mirror their votes in line with clients who choose to vote. The discussions, which have been going on for weeks, are still fluid, and various drafts of the proposed executive order have been circulating. Any moves by the White House would add to pressure surrounding ISS and Glass Lewis, the two biggest proxy advisers. The firms are under attack from JPMorgan Chase’s JPM -0.40%decrease; red down pointing triangle Dimon, who has said they have conflicts of interest, and Tesla’s Musk, who has called them “corporate terrorists.” Meanwhile, a newer entrant, Broadridge Financial Solutions, is seeking to siphon off some of their clients. A White House official said, “Until officially announced by the White House, discussion about potential executive orders is speculation.” ISS and Glass Lewis provide recommendations to asset managers on how to vote on shareholder ballots on topics ranging from executive pay packages to environmental goals. Musk recently lashed out at the firms when they recommended a “no” vote on his historic $1 trillion pay package. Tesla shareholders approved the plan last week. In a statement, ISS said it is a registered investment adviser already regulated by the Securities and Exchange Commission and is committed to operating in a transparent and ethical manner. “ISS is proud of its history of providing high-quality, independent and objective advice,” it said. A spokeswoman for Glass Lewis said providing consulting services to boards and advising shareholders on how to vote creates “significant conflict of interest” but also said the firm prefers that such matters be handled through the regulatory process rather than executive orders. Glass Lewis recently said it would no longer offer its “benchmark” voting recommendations to clients starting in 2027, referring to the firm’s main vote recommendations that are distributed broadly, focusing on tailored advice to individual clients instead. At least one executive from Broadridge has been actively lobbying on Capitol Hill, trying to convince lawmakers that the firm is different from ISS and Glass Lewis. One of the main points: Broadridge isn’t giving corporate clients advice or trying to steer shareholder voting, but rather providing research and voting-infrastructure services. “Broadridge is not a proxy adviser,” the firm said in a statement. “We do not provide proxy voting recommendations nor do we have the intention to do so in the future.” Broadridge is making inroads with some large clients. Goldman Sachs Asset Management and J.P. Morgan Asset Management have both shifted their business to Broadridge, people familiar with the matter said. Broadridge also has hired away or is attempting to recruit executives from the proxy-advisory firms and large asset managers, people involved in the discussions said. Major index-fund managers such as BlackRock, Vanguard and State Street have investment-stewardship teams that make voting decisions on behalf of clients who hold their funds. These index-fund managers tend to vote with corporate management. Carl Icahn refers to the big three index-fund managers as a “cartel,” he recently told The Wall Street Journal, arguing that they have made it impossible for activists to run proxy fights for control of corporate boards. The index-fund managers have all introduced investor-choice programs in recent years that allow some clients to make voting decisions themselves, though there are logistical hurdles to full implementation. Large asset managers are able to put the necessary resources into voting their shares in accordance with their fiduciary duties to clients. But smaller fund managers tend to rely more heavily on firms such as ISS for advice on hundreds of ballot proposals. A measure that curtails those services would be disruptive, some investors said. “There’s a need for the service—they really add value for the average investor, though it’s sometimes hard to tell whether their recommendations are good or not,” said Tao Li, a University of Florida finance professor who studies the firms. “It’s a cheap defense against lawsuits from the investor’s own clients: We’re using a reputable third-party service provider.” Proxy advisers have said that they offer data and analysis to investors, who make the final decision on how to vote. Critics have said voting recommendations from ISS and Glass Lewis often carry the day, forcing boards to follow pay and governance practices they might otherwise eschew. The White House also is considering a directive, some of the people said, to raise the requirements for investors seeking to put a proposal to a shareholder vote through an annual proxy statement. Currently, shareholders holding as little as $2,000 of securities for a minimum of three years can put forth proposals, often to the annoyance of corporate management.

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11/12/2025

Janus Taps Goldman Sachs to Advise on Trian Merger

Citywire (11/12/25) Johnson, William

A special committee formed by Janus Henderson (JHG) to examine a potential acquisition has retained Goldman Sachs as its financial advisor, the firm said on Monday. Additionally, the company has picked Wachtell, Lipton, Rosen & Katz as its legal counsel. The two firms will advise Janus as it fields Trian Fund Management and General Catalyst’s $7.1bn offer to take the asset manager private. The proposed deal, which values Janus at $46 a share, would be financed with a mix of both equity and debt. Trian, which is run by CEO Nathan Peltz, already owns a significant chunk of Janus following its purchase of a roughly 10% stake in 2020. That stake has since surpassed 20%. Under the proposal, Trian and General Catalyst, which is led by CEO Hemant Taneja, would create a new ‘entity,’ which would buy up the remaining shares. ‘Going forward, we believe the company has an opportunity to enhance clients’ experience and further its strategy (protect and grow, amplify and diversify) by significantly increasing long-term investment in the company’s product offerings, client service capabilities, technology and talent. We believe these significant investments can more effectively be done free from the constraints of operating as a public company,’ the CEOs of both firms wrote. Janus CEO Ali Dibadj briefly addressed the pending sale during a recent earnings call. ‘What I’ve been told is that the special committee will be going through a process over months, not weeks,’ Dibadj said. ‘Beyond that, we are not commenting on the proposal at this time,’ he added. The firm reiterated today in its statement that it did not intend to address the proposal further.

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11/12/2025

Proxy Advisers ISS and Glass Lewis Are Facing Antitrust Probes

Wall Street Journal (11/12/25) Pitcher, Jack; Michaels, Dave

The Federal Trade Commission (FTC) is investigating whether proxy advisory firms Institutional Shareholder Services and Glass Lewis violated antitrust laws through their business of guiding shareholder votes on contentious topics, people familiar with the matter said. The investigation is the latest move putting pressure on the two influential advisers, which investment managers rely on for research, analysis and recommendations on how to cast shareholder votes on issues ranging from executive compensation to board elections. The probe, which is in its early stages, is focused on the firms’ competitive practices and how they steer clients on hot-button issues such as climate- and social-related shareholder proposals, people familiar with the matter said. The FTC told Glass Lewis it was investigating whether it and others may have engaged in “unfair methods of competition,” according to a letter sent in late September that was reviewed by The Wall Street Journal. The FTC probe follows an antitrust review launched by the Republican-led House Judiciary Committee this spring. “This non-public investigation does not mean the Commission is suggesting Glass Lewis has acted unlawfully. With complete confidence in our longstanding commitment to high ethical standards, Glass Lewis is fully cooperating with the FTC’s document request,” a Glass Lewis spokeswoman said in a statement. The White House is also discussing at least one executive order that would seek to curb the influence of both proxy advisers and index-fund managers on shareholder votes, the Journal earlier reported. Corporate executives and business groups such as the U.S. Chamber of Commerce have for years complained about the influence of proxy advisers that challenge management’s view on shareholder votes. High-profile CEOs including Elon Musk and Jamie Dimon have weighed in, with Musk referring to ISS as “corporate terrorists” after it recommended Tesla investors reject his $1 trillion pay package. Tesla shareholders passed Musk’s compensation plan last week. Now the Trump administration is joining the pressure, including discussing potential executive orders that would broadly ban shareholder recommendations or block recommendations on companies that have engaged proxy advisers for consulting work, the Journal reported. Some Trump administration regulators, including Securities and Exchange Commission chairman Paul Atkins, have in the past sought tighter oversight of proxy advisers. ISS and Glass Lewis effectively form a duopoly in advising institutional investors on corporate-governance matters. Their influence on votes has already shrunk and big asset managers are quick to say that they make their own decisions. But smaller advisers still rely on them to help sort through thousands of company voting decisions. Civil antitrust investigations focus on whether companies abuse their market power in a way that leads to higher prices or fewer options for customers. The FTC also has the authority to bring enforcement actions over conduct that is deemed “unfair,” a looser standard that antitrust agencies tried to use more frequently during the Biden administration. The House Republicans said in a letter to ISS in March that ISS and Glass Lewis “collude with environmental activists to impose radical environmental, social, and governance goals on U.S. companies.” That probe has sought documents and communications between the two companies on their core business of advising fund managers and other investors on shareholder ballot issues. The Trump administration has made other changes that have won cheers from corporate management. In September, Trump called to end mandated quarterly earnings reports, and the SEC is considering a proposal to make reporting semiannual. Meanwhile, the White House is considering a directive to raise the requirements for investors to put a proposal to a shareholder vote. Currently, shareholders holding as little as $2,000 of securities for a minimum of three years can put forth proposals, often to the annoyance of corporate management.

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11/12/2025

BP in Active Talks with Stonepeak over Castrol Sale, Sources Say

Reuters (11/12/25) Crowley, Amy-Jo; French, David; Gonzalez, Andres

BP Plc (BP) is in active negotiations with investment firm Stonepeak over the sale of its Castrol lubricants unit, according to two people with knowledge of the situation, in what would be a major step in meeting the energy company's $20 billion divestment goal. The sale process for Castrol began earlier this year after the London-listed oil major said in February it had put the century-old lubricants business under review as part of a broader strategy shift away from renewable energy. In September, both Stonepeak and private equity firm One Rock submitted bids for the unit, one of the people and a third one said, speaking on condition of anonymity because the matter is private. The sources cautioned no deal may materialize. Reuters could not determine whether BP is still in discussions with One Rock or any other parties, and details about the value or structure of Stonepeak's offer also could not be learned. Market expectations, according to RBC analysts, place the value of the Castrol sale at around $8 billion in recent weeks. Representatives for BP, Stonepeak and One Rock declined to comment. BP's U.S. listed depository receipts jumped 2% after the Reuters report before paring back the gains. BP has vowed to increase profitability and cut costs while re-routing spending to focus on oil and gas. In August the company launched a review of how best to develop and monetize its oil and gas production assets after new Chair Albert Manifold took up his post and called for a deeper reshaping of BP's portfolio to increase profitability. Earlier this month, BP CEO Murray Auchincloss said there was strong interest in Castrol but did not provide further details. The CEO said he expected completed or announced asset sales to total around $5 billion this year, helped by selling minority stakes in its U.S. onshore pipelines. The sale of Castrol is part of BP's broader effort to streamline operations and boost profitability, particularly as the company faces pressure from investors, including Elliott.

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11/12/2025

Shah Capital Pushes for Novavax Sale, Warns of Proxy Fight

Reuters (11/12/25) Roy, Sriparna

Shah Capital, Novavax's (NVAX) second-largest shareholder, is pressing the biotech's board to pursue strategic changes, including a potential sale, and warned it could launch a proxy fight if no progress is made in the next four months. In a second letter to Novavax's board in less than a month, shared exclusively with Reuters on Wednesday, Shah Capital said it has become "increasingly disenchanted" with the company's weak COVID-19 vaccine sales. "If I don't see changes happening, and if the company doesn't follow through in the next four months, then I think that is definitely a potential for a proxy fight," hedge fund founder Himanshu Shah said in an interview. The fund said it still believes in Novavax's science and has increased its stake to about 8.3%, up from 7.2% in October. However, it said it remains "at a complete loss" over the disappointing sales of Novavax's protein-based COVID-19 vaccine and is frustrated by its negligible market share. This marks another push from the activist investor for change after it withdrew a campaign against three board directors last year, following Novavax's licensing deal with Sanofi (SAN). "It is reasonable to question whether Novavax and its partner are exhibiting a profound lack of competence or intentionally underperforming," the letter said. Novavax's vaccine sold about 120,000 doses as of October 31, during the 2025-26 season that started in August, versus 14.5 million doses sold in the same period by two competitors, leaving Novavax's market share at about 0.8%, the letter said. "Despite strong underlying science and evident market need, the disconnect between potential and execution is striking," the hedge fund said in its letter. Earlier this month, Novavax pushed back its profitability target by a year to 2028. Novavax has a high cost base, needs to be operationally profitable next year and should run more comprehensive trials, Shah said. Shah values the company at $5 billion to $10 billion. Novavax's market capitalization is about $1.21 billion, according to LSEG data. The fund urged the board to immediately form a committee to evaluate a sale and hire a qualified investment bank. Shah has previously named Sanofi, Merck (MRK), GSK (GSK), and AstraZeneca (AZN) as potential buyers, but said he has not contacted them.

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