11/24/2025

Six Flags Names John Reilly President, CEO

Wall Street Journal (11/24/25) Passy, Jacob; Kellaher, Colin

Six Flags Entertainment (FUN) has hired John Reilly as the amusement-park operator’s new president and chief executive officer, effective Dec. 8. Reilly’s appointment is the latest twist in the roller-coaster ride Six Flags has been on since it closed a merger with rival Cedar Fair last summer. The company is looking to recover from a bruising summer during which new attractions broke down and attendance and season-pass sales dropped as a result of bad weather. Shares in Six Flags rose more than 4% following the announcement. The stock has dropped nearly 70% over the past year. In August, Six Flags said Richard Zimmerman planned to step down as president and CEO by the end of the year but would remain in his post until a successor was in place. Zimmerman stepped into his current role following the Cedar Fair merger — he had previously served as Cedar Fair’s CEO since January 2018. Reilly most recently served as group chief operating officer at Spanish theme-park company Parques Reunidos and as CEO of its U.S. subsidiary, Palace Entertainment, which owned regional amusement parks including Kennywood in Pennsylvania, Adventureland in Iowa and Story Land in New Hampshire. He also spent two decades at SeaWorld Parks and Entertainment, including a stint as interim CEO in 2018. Palace was sold to privately-owned theme-park operator Herschend, whose properties include Tennessee’s Dollywood and Missouri’s Silver Dollar City. That deal closed this summer, during Reilly’s tenure. That experience could come in handy as Six Flags faces demands from multiple activist investors, including a group led by Super Bowl champion Travis Kelce and hedge fund Jana Partners. Earlier this month, Six Flags signaled it was exploring options to sell some of its less-popular parks to generate cash. “We’re going to look at the parks where our returns are the greatest, and where the opportunities for growth are the highest,” Six Flags Chief Financial Officer Brian Witherow said on an earnings call. “The other parks we will look to monetize and use those proceeds to reduce debt.” Six Flags also said Monday that Reilly will join its board, with Zimmerman stepping down as a director.

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11/22/2025

Ananym Capital Sees Upside if Baker Hughes Spins Off its Oilfield Services Business

CNBC (11/22/25) Squire, Kenneth

Baker Hughes (BKR), an energy technology company with a portfolio of technologies and services that span the energy and industrial value chain, has a stock market value of $47.84 billion ($48.48 per share). On Oct. 21, Ananym Capital announced that they have taken a position in Baker Hughes and are calling on the company to spin out its oilfield services and equipment business, arguing such a step could help push up the stock price by at least 60%. Baker Hughes operates through two primary segments: industrial and energy technologies and oilfield services and Equipment. The IET unit (55% of projected 2025 revenue and 60% of projected 2025 EBITDA) is a long-cycle industrial and energy business focused on gas technology equipment, including turbines and compressors, and aftermarket services, including new energy applications. The OFSE unit (45%/40%) is a short-cycle oilfield equipment and production services business with an end-to-end portfolio of oilfield services and equipment for well construction and production. Management has built up a strong track record of effective execution, and that success has been reflected in the share price, with the company delivering strong returns of 28.26%, 75.29% and 232.98% over the past 1-, 3- and 5-year periods, respectively. Within IET, the company has taken advantage of its leading position in LNG, in which Baker now has 95% global footprint for the turbomachinery required in plant construction, a market that is expected to grow at a 10% compound annual growth rate through 2030. Additionally, the company has a strong position in power generation, as Baker is one of few original equipment manufacturers supplying smaller-scale turbines and complete behind-the-meter power solutions. These offerings have allowed the company to play a pivotal role in helping to address rapidly growing data center demand, as its data center orders have gone from $0 to $550 million in just two quarters. As such, management is heavily investing in this opportunity — developing larger-scale power systems to support mega-data center deployments. Furthermore, Baker’s pending acquisition of Chart Industries is expected to further strengthen IET’s position in power, LNG, and industrials. As a result, IET is approaching a 20% EBITDA margin, with further margin expansion expected as the business mix continues to shift toward aftermarket services, which generate long-term recurring revenue streams supported by contracts exceeding 10 years and margins of 35% or more. For OFSE, management has taken steps to meaningfully improve the segment’s earnings mix and reduce its cyclical commodity exposure. This includes exiting or downsizing non-core ventures and low-margin product lines, such as its surface pressure control joint venture with Cactus; prioritizing the Middle East and international markets (now 75% of OFSE revenue), which are less correlated to commodity prices; and implementing strong pricing discipline and cost cutting measures by enforcing minimum margin thresholds on new contracts, consolidating product lines and simplifying reporting. However, despite these efforts, OFSE remains highly subject to commodity volatility, affecting both the segment’s performance and the company’s overall valuation. Currently valued at about 9x EBITDA, Baker trades more closely with oilfield services peers (6–7x EBITDA), than its industrial and energy technology peers (16–18x), despite IET being the majority of the company’s revenue and EBITDA. An implied sum-of-the-parts multiple for Baker would put the company at approximately 13x. It is for this reason that Ananym has launched a campaign at Baker calling for the company to either continue growing IET relative to OFSE or to pursue a sale or spin of OFSE. Ananym believes that a potential separation could result in an about 51% immediate upside through realizing Baker’s sum of parts valuation, even when assuming $100 million dis-synergies from separation. Moreover, this upside does not reflect much of the potential long-term growth tailwinds and margin expansion expected from these ongoing operational initiatives — value drivers that shareholders should also be better positioned to realize through such a move. "Knowing Charlie Penner and Alex Silver as we do," writes 13D Monitor founder and President Kenneth Squire, "we would expect them to strive to work amicably with management to create value for shareholders. As such, they have already expressed full confidence in management to choose the optimal path forward, and the company’s strong operational track record fully supports that confidence." Moreover, on Oct. 6, the company announced a review of its capital allocation, business, cost structure, and operations. "With all signs pointing towards alignment between the two parties, we do not expect that they will insist on, or even ask for, board representation or continue to engage in much more of a public campaign," concludes Squire. "Rather, we expect them to work amicably with Baker behind the scenes to unlock meaningful shareholder value. However, this cooperative approach should not be confused for weakness, as they are fiduciaries to their own investors and will do whatever is necessary to create value at their portfolio companies. Thus, should management fail to act decisively, Ananym could quickly shift to a more assertive stance."

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11/21/2025

Palliser Proposes That Japan Post Carve Out Real Estate Holdings

Nikkei Asia (11/21/25) Yamashita, Akira

Palliser Capital has proposed that Japan Post Holdings (6178) undertake asset efficiency improvements such as carving out its real estate holdings, contending that the group's stock price is trading around 50% below its intrinsic value. Palliser says it holds 0.5% of Japan Post Holdings shares, making the U.K. firm one of the top 15 shareholders. While Japan Post Holdings has said its rental properties are worth 1.5 trillion yen ($9.59 billion), a third-party estimate suggests the value is closer to 3 trillion yen. Palliser said the value of the Japanese postal group's real estate business is not being fully evaluated by the market, and that it thinks limited disclosure is the cause. Palliser asserted that consolidating the real estate business into a single company would open options such as merging with other real estate operators, selling to a real estate investment trust or spinning off and listing. The U.K. investor estimated the group's market capitalization of 4.3 trillion yen could reach 8.5 trillion yen. As Japan Post Holdings owns Japan Post Bank and Japan Post Insurance, its complex financial disclosures make its value difficult to discern, Palliser said. The shareholder estimates that net cash and deposits for Japan Post Holdings total 1 trillion yen, equivalent to one-quarter of its market capitalization, and that an increase in dividends is also possible. Though Palliser has engaged in activist shareholder tactics at Japanese companies like Keisei Electric Railway (9009), it generally agrees with Japan Post's overall management policy and thinks the company's nationwide postal operations should be firmly maintained, a Palliser insider said.

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11/21/2025

Analysis: Britain's Investment Trusts Face Turning Point with Policy Shifts and Activist Pressure

Reuters (11/21/25) Indyk, Samuel; Mackenzie, Nell

Britain's unloved investment trusts may be nearing a turning point as falling interest rates, a possible government drive to boost share ownership, and activist pressure converge to unlock value. Investment trusts, which pool shareholder funds into diversified portfolios, have been a fixture of Britain's markets for 150 years. They aim to deliver steady dividend income but often trade below the value of their underlying assets. Average discounts to net asset value (NAV) have been stuck in double digits for over three years — the longest stretch in at least three decades. With investment trusts including the likes of Tritax Big Box (TTBXF) and RIT Capital Partners (RCP) making up nearly a third of the FTSE 250, the index's sluggish 4.3% rise this year highlights the sector's underperformance. According to the Association of Investment Companies (AIC), the average investment trust share price trades at 13% below NAV compared to a historical average of about 4% from 2015 to 2021. The discounts also reflect broader malaise in UK equities, which have suffered persistent outflows, a dearth of new listings and a surge in deals taking companies private. UK equities have seen $32.4 billion in outflows in 2025, according to Barclays Research and EPFR data. London's $380-billion FTSE 250 mid-cap index has lagged this year, rising just 4.3% compared to a 17% rise for the larger-cap international FTSE 100 index. It's also cheaper, trading at 12.7 times earnings, compared to the FTSE 100, which trades at 17.4 times earnings. But falling interest rates could change the picture, investors and analysts said. The BoE has signaled another potential rate cut in December, and possibly more next year. "If rates were to come down meaningfully, that's going to have a benefit on the sector as a whole," said Matt Ennion, head of fund research at Quilter Cheviot. Finance minister Rachel Reeves is also expected to unveil measures in her November budget to encourage pension funds to invest domestically and tighten rules around tax-free savings products — potentially funneling more household cash into equities. "The UK just doesn't have much domestic investment in equities broadly," said Sharon Bell, senior European equity strategist at Goldman Sachs. "The key thing is to get more investment into risk assets which give investors longer-term better returns." Activist investors are adding to the positive momentum. Boaz Weinstein's Saba Capital has campaigned against trusts he calls "underwhelming." "Since we began, manager behavior has been better for shareholders, especially in the funds we own,” Weinstein said. Smithson Investment Trust (SSON), of which Saba holds about 16%, announced it will convert from a closed-ended fund to an open-ended fund, allowing investors to exit at NAV minus costs. Its shares rose more than 7% following the announcement. “We think this proposal provides a blueprint as to the type of option that boards should consider in order to enhance shareholder value, in situations where discounts in excess of 10% persist over a long period of time,” said Stifel analyst Iain Scouller. Boards are also deploying share buybacks more aggressively. Winterflood Securities reports year-to-date share buybacks have reached a record 8.6 billion pounds ($11.54 billion), 35% above the same period in 2024 and already greater than last year's total. "Boards that are more active in the way they're engaging and responding to investors have benefited and been able to either narrow or avoid widening discounts," Winterflood research analyst Alex Trett said. With monetary policy easing, government incentives on the horizon, and activists forcing change, Britain's investment trusts may finally be ready to shake off years of neglect.

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11/21/2025

Plantro Offers $384 Million to Buy Dye & Durham

Financial Post (11/21/25) Sambo, Paula

Plantro Ltd., the investment firm controlled by former Dye & Durham Ltd. (DYNDF) executive Matt Proud, has submitted a fresh proposal to take the legal software company private for about $384 million, according to people familiar with the matter. The offer was sent to Dye & Durham’s special committee this week and proposes to pay $5.72 a share in cash and notes, according to the people, more than double the stock’s closing price on Thursday. The stock was halted at the open in Toronto on Friday, and rose as much as 33% after it resumed trading before paring some of those gains. Before Friday, Dye & Durham’s shares had dropped 85% this year, giving the company a stock market value of just $182 million. That’s largely because it’s burdened with some $1.6 billion in debt and faces a potential default due to late financial disclosures. The proposal lands after a year of upheaval at Toronto-based Dye & Durham, which provides technology for law firms to help them manage their practices, handle legal accounting and perform other tasks. Proud, the company’s longtime chief executive officer, departed late last year after losing a proxy fight to activist investor Engine Capital. But soon after, he was trying to come back. In February, Proud and Plantro floated a $20-a-share offer worth about $1.3 billion. Although that didn’t go anywhere, he continued to agitate for the company to go private. In July, Dye & Durham launched a strategic review after reaching a truce with Proud and Plantro that paused a heated governance dispute. The review is examining options including a sale, breakup, recapitalization, or merger. Matthew Proud and Dye & Durham’s board have had a contentious relationship after he lost a proxy fight last year, resulting in his departure from the company. The fragile peace between the board and Proud collapsed by October. Canadian Imperial Bank of Commerce, adviser to the special committee, withdrew from the mandate, and Dye & Durham filed a legal action accusing Proud and Plantro of violating the July cooperation agreement and undermining the review with “misleading statements” about its finances. This week brought more governance shake-ups. The company named veteran dealmaker Alan Hibben as independent chair and added chief executive George Tsivin to the board, according to a statement Thursday. Three directors resigned, including Engine Capital’s Arnaud Ajdler. The changes come as Dye & Durham prepares for a Dec. 31 annual meeting and looks to repair its deteriorating financials. In a separate move Friday, OneMove Capital Ltd., a company led by Proud’s brother, Tyler Proud, nominated five directors of its own to the board. Tyler Proud, who co-founded Dye & Durham, cited “poor leadership” from directors installed by Engine as the reason in a statement. “Yesterday's attempt by former Chairman Arnaud Ajdler to hand-pick his own replacement is consistent with the same approach that created the problem,” he said. OneMove's nominees are Tyler Proud, Edward Smith, David Giannetto, Allen Taylor, and ex-Dye & Durham director and Chief Financial Officer Ronnie Wahi. As for Plantro's takeover offer, the company told Dye & Durham's board it's prepared to sign a binding agreement immediately with no additional due diligence, according to the people. Under the proposal, shareholders would receive $3.50 in cash at closing, with the remaining $2.22 paid in new senior unsecured notes yielding 15% — though only a third of that interest would be payable in cash, the people said. Plantro also offered a go-shop period, allowing the board to sign a deal quickly while continuing to solicit higher offers. The stock was trading at $3.19 at 11:22 a.m. Friday.

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11/21/2025

Equinix Escapes Enforcement from SEC Probe

The Real Deal (11/21/25)

Data center real estate investment trust Equinix (EQIX) is breathing a sigh of relief after a probe by the Securities and Exchange Commission ended without any action. The company disclosed recently that the SEC concluded its investigation. Equinix stated that there will be no further action, such as a lawsuit, after the probe into alleged stock manipulation. The investigation began after activist short-seller Hindenburg Research alleged in a March 2024 report that Equinix inflated growth metrics through fuzzy accounting. Hindenburg claimed Equinix oversubscribed capacity, promising power to customers that it did not possess, allegations the firm denied. But the enforcement division of the SEC and the U.S. Attorney’s Office for the Northern District of California quickly entered the picture, subpoenaing the company days after the report; Equinix does not expect further action in the state probe, either. After the report, shareholders filed a class-action lawsuit against Equinix, accusing it of manipulating reported capital expenditures to increase its adjusted funds from operations. Equinix resolved that case with a $41.5 million settlement. Before the Hindenburg report, Equinix stock was trading around $850 per share and dropped to around $700 per share after an extended sell-off stemming from the report. It recovered to top out at $994 per share in December. The stock closed at $752.81 on Thursday. The stock is down more than 20% year-to-date, but the company posted $2.3 billion in revenue in the third quarter, a 5% gain year-over-year. Equinix counts more than 270 data centers across six of the world’s continents. It is considered a colocation specialist, meaning it rents space and computing power on servers inside its data centers. It has 58 projects under development across the world as data centers continue to boom behind the artificial intelligence craze. Over the summer, Elliott Investment Management was reported to be growing its stake substantially in Equinix, becoming one of its largest investors.

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11/21/2025

Glass Lewis Mulls U.S. Investment Adviser Registration, Could Ease Criticism

Reuters (11/21/25) Kerber, Ross

A top Glass Lewis executive said the firm may register itself as a U.S. investment adviser, which would subject it to more regulation but potentially assuage criticism from corporate executives and Republican politicians over its proxy voting recommendations. "We're seriously considering registration as an investment adviser" with the Securities and Exchange Commission in Washington, Glass Lewis Chief Strategy Officer Cheryl Gustitus told Reuters in an interview on Friday. Gustitus did not give a timeline on when the company, owned by Canada's Peloton Capital Management and its Chairman Stephen Smith, might make a decision. But she said that the matter should be seen in conjunction with other steps Glass Lewis has taken to recast the influential role it plays in U.S. corporate governance under Chief Executive Bob Mann, who took over last year. For instance, last month Glass Lewis said it will end its "benchmark" proxy voting recommendations in 2027, and Gustitus said clients will be able to choose among various approaches for its research. "We're trying to evolve, we're not digging in," Gustitus said. Glass Lewis and its larger rival Institutional Shareholder Services (ISS) have faced Republican criticism and investigations over their recommendations on how big institutional investors should vote at corporate annual meetings on matters like executive pay or climate issues. This year, both firms backed fewer shareholder resolutions on environmental matters as companies ramped up climate disclosures. ISS has been a registered investment adviser with the SEC for about 25 years, giving the Wall Street regulator the power to review things like how the company manages potential conflicts of interest. Glass Lewis was previously registered with the agency but withdrew the status in 2005, saying it was inappropriate because among other things the firm did not recommend clients trade, purchase, sell or hold securities.

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11/20/2025

SEC Steps Away from Shareholder Proposal Review, Creating Uncertainty for Proxy Season

Pensions & Investments (11/20/25) Croce, Brian

Following the SEC’s announcement that it will not act as a referee on requests to exclude shareholder proposals this proxy season, public companies will have more power over the process, but the development isn’t a sure-fire win for the business community, experts said. The change could lead to more chaos this proxy season, and more proposals making it onto proxy statements if companies fear a legal challenge as a result of their decision. “This will bring about certainly some short-term chaos here as people try to figure out the lay of the land,” said David Lynn, a partner in Goodwin Procter’s capital markets group and chair of the firm’s public company advisory practice. Added Cynthia Krus, a partner and co-chair of the global board at law firm Eversheds Sutherland, “I think it’s going to create a lot of confusion and I would say chaos, on how to respond” because the announcement was made during the period when shareholders typically submit proposals to companies. The SEC’s corporation finance division on Nov. 17 cited “resource and timing considerations following the lengthy government shutdown,” and the “large volume of registration statements and other filings requiring prompt staff attention,” as reasons why it will not “respond to no-action requests for, and express no views on, companies’ intended reliance on any basis for exclusion of shareholder proposals.” In a follow-up email, an SEC spokesperson said the decision was made “after thoroughly considering the staff’s role in the shareholder proposal process, staff resources, and timing issues. With over 900 registration statements and many other filings received during the government shutdown, this decision will allow staff to focus on time-sensitive transactional matters including capital formation and investor protection.” Companies that intend to exclude shareholder proposals from their proxy materials must still notify the SEC and proponents no later than 80 calendar days before filing a definitive proxy statement, the SEC noted in its announcement. Bryan McGannon, managing director at US SIF: The Sustainable Investment Forum, a nonprofit whose members include institutional investors, asset managers and financial advisers, said in an email the shareholder proposal process is a critical tool for investors to guard investment value from material risks and to protect the American public from corporate misconduct and egregious behavior. “Taking away the right to have shareholder proposals on the proxy will leave shareholder proponents with only costly and onerous options such as suing the issuers or voting against board directors,” he said. Looking ahead, Krus said she expects the SEC to issue a formal rulemaking on the matter. “I think they want to get out of the shareholder proposal business,” Krus added. The SEC’s latest agenda, unveiled in September, included potential amendments to Rule 14a-8 to “reduce compliance burdens for registrants and account for developments since the rule was last amended.” The Trump administration is also mulling other changes for investors to navigate during proxy season. It’s reportedly considering an executive order aimed at limiting the role of proxy advisory firms Institutional Shareholder Services and Glass Lewis. SEC Chair Paul Atkins has said the proxy firms have too much power over management decisions. Shareholders can file a proposal before a public company's annual meeting and it must be filed at least 120 days before the company's proxy statement was released for the previous year's annual meeting. But if a company thinks a proposal is out of bounds or has already been addressed, it can file a no-action letter with the SEC, requesting permission not to include the proposal in its proxy statement. There are a host of reasons to exclude a proposal under Securities Exchange Act Rule 14a-8, and it's long been established that the SEC is the go-to referee for companies seeking to exclude a proposal. The business community and Atkins have long called for reducing the influence of activist investors who submit shareholder proposals each proxy season. Atkins in a speech last month in Delaware said he wants to “depoliticize shareholder meetings” as part of a broader effort to entice more companies to go public. In that same speech, Atkins made the case that Delaware state law does not provide shareholders the right to have their proposals addressed by companies. Given Atkins' prior comments, “I don't think that anyone should have seen this as sort of coming out of left field,” Goodwin Procter's Lynn said of the Nov. 17 announcement. Mike Flood, senior vice president of the U.S. Chamber of Commerce's of Center for Capital Markets Competitiveness, was pleased with the SEC's move. “Addressing the costs and politicization of the SEC's shareholder proposal system is a top priority of the Chamber,” he said in a statement. “We welcome (the) announcement and look forward to working with the SEC on permanent reforms to Rule 14a-8 in the coming months.” Investor groups, on the other hand, were displeased. So too was SEC Commissioner Caroline Crenshaw, the commission's lone Democrat. “This announcement is more of a giveaway to issuers than an exercise in resource allocation,” Crenshaw said in a Nov. 17 statement. “And, more directly, it is an act of hostility toward shareholders.” She also called the announcement a Trojan horse. “It cloaks itself in neutrality by expressing that the division will not weigh in on any company's exclusion of shareholder proposals, but then it hands companies a hall pass to do whatever they want,” she added. “It effectively creates unqualified permission for companies to silence investor voices (with 'no objection' from the commission). This is the latest in a parade of actions by this commission that will ring the death knell for corporate governance and shareholder democracy, deny voice to the equity owners of corporations, and elevate management to untouchable status. In a neutral way, of course.” The threat of legal action — shareholders suing companies alleging they've violated Rule 14a-8 by excluding a given proposal — could lead to more companies playing it safe and allowing contentious shareholder proposals to make it onto their proxy ballots, sources said. “If you excluded something, what would happen to your reputation, your stakeholders?” Krus said. “So I think it's going to weigh on management. You could have an opposite effect, which is, you have a lot more shareholder proposals in proxies because nobody wants to have the exposure out there.” Ryan Adams, a public company advisory and governance partner at law firm Morrison & Foerster, said that while the SEC's announcement could be seen as a boon to companies, it's important to think about the policy change in terms of risk management. “Now, companies will have to determine whether they are comfortable excluding proposals without staff concurrence, and there's some litigation risk that comes along with that,” he said. “In the past, we've seen most companies actually hesitant to proceed with excluding proposals without approval of the SEC staff so it's actually quite possible that this action could result in more proposals going to a vote.”

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