8/21/2036

Kaos Capital Demands Board Overhaul at Capricor Ahead of FDA Decision on DMD Therapy

BigGo Finance (08/21/36)

Capricor Therapeutics Inc. (CAPR) is facing an activist campaign from shareholder Kaos Capital, which is demanding immediate board changes, a cash-preservation plan, and the creation of an M&A committee just one day before the U.S. Food and Drug Administration (FDA) is scheduled to act on the company's experimental Duchenne muscular dystrophy therapy. Kaos Capital, a Miami-based investment firm that describes itself as a "significant and growing shareholder," issued a letter to fellow shareholders on August 21 calling for a meeting with the board within 15 business days. The firm said it intends to nominate two independent directors and push for a board-led M&A and Strategic Alternatives Committee chaired by a shareholder-backed director. The activist campaign lands at a precarious moment for Capricor. The FDA's action date on deramiocel, the company's cell therapy for DMD-related cardiomyopathy, is August 22. In June, an FDA advisory panel voted 9-3 against the drug's use for that indication, casting significant doubt over its approval prospects. Capricor shares were down approximately 2% at the time of the letter's release. In the letter signed by CEO Adam Arviv, Kaos argued that Capricor has become overly dependent on a single regulatory outcome and must take immediate steps to preserve capital while exploring acquisitions, licensing deals, and partnerships that could broaden its pipeline. The company reported $237.9 million in cash, cash equivalents, and marketable securities as of June 30, down roughly $80.2 million from year-end 2025. First-half 2026 operating expenses totaled $79.7 million, including $23.5 million in general and administrative costs — approximately double the comparable 2025 figure, according to the letter. Kaos called for a formal Cash Preservation Plan that would include: a near-term freeze on nonessential spending; a zero-based review of G&A expenses; enhanced approval requirements for material commitments; and quarterly reporting on cost reductions, cash runway, and capital use. The firm also urged the board to retain independent legal advisers and commission a review of oversight, disclosure controls, contracting, compensation, and capital-allocation processes. Kaos cited "numerous legal matters and shareholder demands" disclosed in Capricor's public filings, including securities and derivative actions, a Section 220 books-and-records demand, a patent action, a distribution dispute, and employment-related claims. A further securities class action was filed against the company and certain officers in 2026. "This legal overhang carries cost, distraction, reputational risk, and governance consequences," the letter stated. Kaos emphasized it is not asking Capricor to abandon deramiocel, which it believes "may still have meaningful value for patients." Instead, the firm wants the company to use its cash and public-company platform to build a broader, multi-modality biotechnology enterprise. The proposed M&A committee should evaluate assets in inflammation, fibrosis, tissue repair, targeted delivery, and regenerative medicine, the letter said. Kaos specifically pointed to advanced small-molecule pharmacology targeting the NLRP3/inflammasome signaling pathway as one area of interest. "Conviction in a lead program is not a license for a Board to concentrate all of a public company's capital, risk, and future in a single regulatory outcome," Arviv wrote. The activist push comes as Capricor awaits the FDA's decision on deramiocel. The agency's action date is August 22, though the timeline has grown complicated. After the advisory committee's negative vote in June, Capricor said the FDA was willing to review an amendment containing 24-month Hope-3 data focused on upper-limb function. A new target date has not been formally announced. Roth Capital expects the FDA review could be extended by approximately three months to accommodate the additional data. Kaos said it is prepared to work constructively with the board but warned of escalation if its demands are not met. If the board does not confirm and convene the requested meeting within the specified timeframe, Kaos said it will begin seeking shareholder support to elect its two independent nominees, replace directors, and potentially pursue removal of senior management. "We do not take that step lightly, but continued inaction would leave shareholders no reasonable alternative," the letter read.

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10/1/2026

Korea Loses Elliott Arbitration Again Over Samsung Merger

Korea Herald (10/01/26) Yeon-jae, Choi

South Korea has again been ordered to compensate Elliott Investment Management over government intervention in the 2015 merger of Samsung C&T (KRX: 028260) and Cheil Industries. A three-member arbitration tribunal reaffirmed $48.49 million in damages, the same amount awarded in 2023, plus interest and legal costs. Elliott estimates the total obligation at about $113 million, or 153.7 billion won, including costs associated with the government’s challenge to the original ruling. The dispute began in 2018, when Elliott, then a Samsung C&T shareholder, claimed that government interference with the National Pension Service’s vote on the merger caused financial losses. The original tribunal ruled in Elliott’s favor in 2023. South Korea subsequently challenged the decision in a UK court, which partially annulled the award in February but sent the case back to arbitration to determine whether other government actions still caused Elliott’s losses. The rehearing tribunal concluded that government intervention created a causal link to Elliott’s losses, finding that the National Pension Service would have opposed the merger without the intervention. The ruling preserves the government’s liability even though the pension fund itself was not considered a state entity under the relevant treaty. Elliott said interest is continuing to accrue at more than $10,000 per day and urged Seoul to accept the award. South Korea’s Justice Ministry said it is reviewing the decision with government agencies, legal advisers, and outside experts, but has not indicated whether it will pay the award or pursue another legal challenge.

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9/30/2026

Gold Fields Aims to Woo Northern Star Investors After Miner's Rebuff

Reuters (09/30/26) Burton, Melanie

Gold Fields (GFIJ.J) could make another run for Northern Star Resources (NST.AX) after the Australian miner rejected a $27 billion takeover offer, with investors expecting it to return with more cash. Northern Star rebuffed an unsolicited A$38.7 billion ($27.1 billion) buyout proposal in shares and cash from Gold Fields to create the world's second-biggest gold miner, the latest consolidation play in the sector as producers seek scale and longer-life reserves. "Whilst we see strong merit in the combination with Northern Star, we’ll be very disciplined about how we pursue this opportunity," Fraser said at a conference in Denver on Tuesday. Investors briefed by Gold Fields said they expected it to improve its offer, most likely with more cash, after an Australian road show in late October, because issuing additional shares would dilute cash flow per share, three people said. A source familiar with the process said no decisions had been made on raising the offer. A Gold Fields spokesperson said the road show had been planned before the takeover offer was disclosed, as the company wanted to familiarize Australian investors with its assets. Investors said it was hard to assess the value of the largely scrip offer from the South African miner as Gold Fields' operations were not particularly well known in Australia. Gold Fields' shares are trading on an enterprise multiple of 3.5 to 4 times earnings before interest, tax, depreciation and amortization, much cheaper than Northern Star's multiple of 7 to 8 times. However the South African miner's five-year average free cash flow yield is 6.9%, well above Northern Star's at 3.1%. The valuation gap is likely to widen in the next 12 months as Northern Star is set to ramp up output at its Kalgoorlie operations in Western Australia, yielding more free cash flow, said one fund manager. "I can be convinced on accepting shares. I think it's going to be hard for it to be all cash," the fund manager said, declining to be named because it was against company policy. "Gold Fields needs to do a deal soon or Northern Star will be too expensive for it in a year's time — assuming Northern Star executes," he added. Northern Star's rejection of the offer came just ahead of the arrival of its new CEO, Suresh Vadnagra, on October 5. Vadnagra faces a "baptism of fire" to convince shareholders that Gold Fields' offer undervalues Northern Star and that a stand-alone strategy can offer more value, Barrenjoey analyst Dan Morgan said. Northern Star's shares rallied as much as 9% on Wednesday to A$25.59, which was above the A$23.76 implied value of Gold Fields' rejected offer as of Tuesday's close, reflecting expectations the suitor is not going away. Northern Star closed up 6.3% at A$24.77 while Gold Fields shares steaded up 0.3% at 604.97 rand by 1236 GMT, still down around 8% from Sept 25, the last close before the bid became public. "If Gold Fields ups the bid as I expect them to, then I would expect Northern Star to reengage," said Jon Mills at Morningstar. Northern Star declined to comment on expectations that Gold Fields will make another offer. Besides seeking answers on valuation, investors want details on the $4 billion to $5 billion of corporate, operational and portfolio optimization synergies Gold Fields expects to extract from a deal. Investors said it appeared that most of the cost savings stemmed from paying less tax on the combined operations. "We would estimate that tax synergies could be around 60% of identified synergy and not unique to Gold Fields," Morgan said. Operational synergies center on two clusters of assets in Western Australia. These include Northern Star's Thunderbox mine and Gold Fields' nearby Agnew operation, along with Gold Fields' St Ives mine and Northern Star's South Kalgoorlie assets. "Gold Fields believes its proposal offers compelling strategic and financial benefits for both sets of shareholders," it said in a statement, adding it saw future growth coming from the high grade development projects of Windfall in Canada and Hemi in Western Australia. Another potential obstacle is that generalist investors would probably want a combined company to be domiciled in Australia, given about 70% of revenue would originate there and due to negative perceptions of governance, capital controls and taxation in South Africa, the fund manager said. Gold Fields has offered a secondary listing in Australia, and said in the statement, "If the deal were to proceed, the combined company would be a truly global business with listings in Australia, the United States and South Africa." Two people pointed to the possibility of a rival bidder emerging. In a June letter responding to investor Elliott, Chairman Michael Chaney said Northern Star had received approaches from "multiple companies" regarding "various corporate combinations," although none was judged to be in shareholders' interests at the time.

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9/30/2026

Mattel Taps Condé Nast's Lynch as CEO Kreiz, Who Led Brand Revival, Departs

Reuters (09/30/26) Kanatt, Neil

Mattel's (NASDAQ: MAT) longtime CEO Ynon Kreiz, who led the strategy to transform the struggling toymaker into an entertainment company, is leaving, handing over the reins to board member and CEO of media company Condé Nast, Roger Lynch. The leadership change comes ahead of the crucial holiday season and at a time when Mattel is grappling with tariff-related costs and investor pressure due to a decline in shareholder value despite efforts to build on the blockbuster success of the 2023 "Barbie" movie. Kreiz has led Mattel since 2018 and is leaving for a senior leadership role in another public company, Mattel said on Wednesday. His efforts to expand into films, television, and digital gaming by leveraging Mattel's intellectual property culminated in the global box-office success of "Barbie," boosting demand for the toymaker's merchandise. Yet Mattel's shares failed to keep pace with the broader market during Kreiz's tenure, rising just about 5% since he became CEO, compared with a nearly 200% surge in the S&P 500 during that period. Shares of the Barbie doll and Hot Wheels maker were down about 3% in early trading. Earlier this year, investor Southeastern Asset Management urged Mattel to explore options, including a sale of the company or a combination with rival Hasbro (HAS.O). Lynch, who has served on Mattel's board since 2018, is expected to assume the top role by Nov. 2. Meanwhile, Condé Nast, where Lynch has been CEO for about seven years, named board member Mike Perlis as interim CEO. "Roger's appointment comes at a time when the lines between consumer products and media are more blurred than ever, so it makes sense to place an experienced media operator at the helm," James Zahn, Editor-in-Chief at The Toy Book, said. Last month, Mattel topped second-quarter revenue estimates and reaffirmed its annual targets, but tariff-related costs and investments to boost sales resulted in profit missing market expectations. "Roger is a visionary leader with a track record of growing global companies at the forefront of changing industry and consumer trends," Mattel board member Judy Olian said. Kreiz did not respond to a Reuters request for comment on his next role.

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9/30/2026

Japan's Toho Holdings Eyes KKR's Health Device Maker PHC for $1.3 Billion

Bloomberg (09/30/26) Fuse, Taro

Toho Holdings Co. (TYO: 8129), a Japanese pharmaceutical wholesaler, is in talks to acquire KKR & Co. (NYSE: KKR)-led medical device maker PHC Holdings Corp. (TYO: 6523) for more than ¥200 billion ($1.3 billion), according to people familiar with the matter. Tokyo-based Toho has submitted an initial proposal and is conducting due diligence, the people said, asking not to be identified because the discussions are private. While domestic investment funds have also shown interest in PHC, Toho is currently the only prospective buyer engaged in concrete discussions. KKR is the largest shareholder in PHC, with a roughly 38% stake, according to data compiled by Bloomberg. Both firms have appointed financial advisers and have been seeking a buyer for the healthcare company in line with KKR’s plans to exit its investment. Amid growing pressure from shareholders and investors, the healthcare industry in Japan is seeing a wave of management-led privatizations. Hisamitsu Pharmaceutical Co. — known for its Salonpas pain-relief patches — and Taisho Pharmaceutical Holdings Co. have moved to go private in recent years, while Kobayashi Pharmaceutical Co. (TYO: 4967) is considering a private equity-led buyout. Shares of PHC have climbed 29% this year, giving it a market capitalization of ¥182 billion. The tender offer price is expected to include a premium and the total acquisition cost could exceed ¥200 billion, the people said. Representatives for Toho, KKR and PHC didn’t respond to requests for comment. U.S. investment firm KKR acquired an 80% stake in PHC’s predecessor, Panasonic Healthcare (TYO: 6523), in 2014. The company went public in Tokyo in October 2021, and KKR has been selling down its stake to recoup its investment. If the acquisition of all shares is completed, PHC will be delisted. PHC operates in three main areas: diabetes management, healthcare solutions, and diagnostics and life sciences. Toho is seeking to expand its business through partnerships and acquisitions in related fields such as medical devices, diagnostic reagents and healthcare information technology, according to its midterm management plan. The drug wholesaler has been in a prolonged tussle with an investor. Since taking a stake in June 2024, 3D Investment Partners has urged Toho to improve profitability, reduce assets including cross-shareholdings, and boost investor returns.

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