3/31/2026

Palliser Engages MSG Maker Ajinomoto in AI Hunt

Bloomberg (03/31/26) French, Alice

Palliser Capital has expanded its hunt for overlooked AI beneficiaries in Japan with a stake in seasoning maker Ajinomoto Co. (TYO: 2802), according to people familiar with the matter. Palliser has built a position in Ajinomoto within the past six months and is lobbying for the firm to raise prices for its chip insulation products, the people said, asking not to be named as the information is private. Palliser is now among Ajinomoto’s top 25 shareholders, they said. The fund is calling for a more than 30% increase in prices for Ajinomoto Build-Up Film (ABF), according to a document seen by Bloomberg. ABF is used to package high-performance semiconductors, and Palliser believes Ajinomoto is missing out on substantial share price upside from the AI infrastructure buildout, the document shows. The investment is part of Palliser’s move to identify lesser-known winners from the ongoing artificial intelligence boom. It follows the fund’s recent stake in toilet maker Toto Ltd. (TYO: 5332), where it is calling for more disclosure around the company’s chip parts business. Ajinomoto holds more than 90% of global market share for insulating materials used in PCs and data center servers, according to its website. Palliser is urging the company to establish the ABF business as a standalone segment to raise awareness of its strength, according to the people. Ajinomoto shares have gained around 3% in the past six months, underperforming Japan’s benchmark Topix, which has risen almost 12%. In contrast, other chip material makers like Ibiden Co. (4062.T) and Resonac Holdings (4004.T) have rallied more than 60%. Ajinomoto, which is known for discovering MSG seasoning more than 100 years ago, brought its resin-based chip insulating films to market in 1999. Their origins lie in Ajinomoto’s command of MSG. Chlorinated paraffin, a byproduct of the MSG-making process, can be used to soften resin, according to the company’s website. ABF sales are rising due to AI demand and the business will “drive company-wide performance” in upcoming quarters, according to Ajinomoto’s February earnings presentation. The company opened a new facility to produce ABF products in Gunma, central Japan, in October. The ABF business currently falls under Ajinomoto’s “healthcare and others” segment, which accounted for around 29% of the company’s total business profit in the fiscal year ended March 2025.

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3/31/2026

Marmite Maker Unilever Creates Food Empire in $45 Billion Merger

City AM (03/31/26) Armstrong, Felix

Unilever (LON: ULVR, NYSE: UL) has sealed a $45 billion merger of its food brands with U.S. spice and seasoning giant McCormick (NYSE: MKC), forging a $60 billion food empire in which the London-based firm holds a majority stake. Unilever and its shareholders will own 65% in the new body, with the firm receiving $15.7 billion (£11.6 billion) in cash and the equivalent of $29.1 billion (£21.9 billion) McCormick shares. The merger marks the culmination of a telegraphed push from Unilever to shift away from its food brands, as new chief executive Fernando Fernandez bids to make his consumer juggernaut a “sharper and faster” company. Before the merger was confirmed, analysts had speculated that a straightforward sale would be unlikely because the financial profile of Unilever’s food arm dwarfs that of McCormick. London-based Unilever had been nearing a deal with McCormick since it confirmed talks earlier this month, in which it said its food brands comprise a “highly attractive” business with a “strong financial profile." Fernandez said: “For Unilever, this transaction is another decisive step in sharpening our portfolio and accelerating our strategy towards high-growth categories.” The new chief executive plans to save €800 million over three years and shed 7,500 jobs – including 200 managers as the new chief executive takes aim at “mediocrity” in the firm. Nelson Peltz has been pushing for Unilever to streamline its offering since taking a stake in 2022. Peltz, the founder of Trian Partners, has held a non-executive role on the FTSE 100 firm’s board since building out his stake four years ago. “Having slimmed down, Unilever will want to show it is fighting fit for the future and it will get its next opportunity to do so with next month’s first-quarter update,” Russ Mold, AJ Bell investment director, said. Brendan Foley, McCormick’s chief executive officer, said: “This combination will create a diversified flavor leader with a robust growth profile that remains differentiated by its focus on flavoring calories while others compete for them.” Earlier on Tuesday it emerged that Unilver had placed an immediate freeze on hiring as it braced for costs from the Iran war.

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3/31/2026

Irenic Said to Build Stake in Snap

Bloomberg (03/31/26) Baker, Liana

Irenic Capital Management has built a position in social media company Snap Inc. (NYSE: SNAP) and is pushing for changes to improve financial and operating performance, according to people familiar with the matter. The investor sent a letter to Snap Chief Executive Officer and co-founder Evan Spiegel, outlining its views it hopes could boost the company’s shares to more than $26 each, the people said, asking not to be identified because the matter is private. Irenic’s economic interest in Snap’s Class A shares is around 2.5%, the people added. Snap’s shares were trading at $4.13 per share at 10:01 a.m. in New York Tuesday, giving it a market value of almost $7 billion. The stock is down 50% this year. “We bought Snap because we think the social network you built is an extraordinarily valuable asset – whose strategic value is only increasing,” Irenic said in the letter, which was reviewed by Bloomberg News. Irenic recommends spinning off or shutting its smart glasses business Specs, which it argued, with $3.5 billion already sunk into it, should “be funded on its own” by now. Snap announced in January that it would create a standalone subsidiary dedicated to Specs. Michael Lynton, chairperson of Snap’s board responded in a statement that “Snap welcomes input from all shareholders and regularly engages with investors on strategy, capital allocation, and governance.” He added that the board and management “are focused on building a more efficient, profitable business while investing with discipline in our long-term roadmap.” He said the company has “taken steps to improve performance, strengthen free cash flow, and offset dilution, and will continue to evaluate actions that drive long-term value for all stockholders.” The hedge fund also proposes that Snap should rationalize its cost structure by cutting its workforce and changing its compensation structure for employees. “Like many of your peers you over-hired,” Irenic said. “Unlike your peers, you haven’t course corrected.” It also suggests doing a stock buyback since shares are so discounted. The company should focus on adopting artificial intelligence to improve ad monetization, pointing to dramatic improvements at Meta Platforms Inc. and AppLovin Corp. at boosting ad revenue. In November, Snap announced a stock buyback program of up to $500 million of its Class A shares. It also unveiled a $400 million partnership with Perplexity AI Inc. to incorporate its AI-powered search engine into Snapchat. As of the end of September, Snapchat had 943 million global monthly active users and daily active users were 477 million. Irenic was founded in 2021 by Adam Katz, who came from Elliott Investment Management, and Andy Dodge from Indaba Capital Management. It has been building out its private equity practice and hired E-Fei Wang from Apollo Global Management Inc., Bloomberg reported this month. The fund has experience running campaigns at controlled companies before and in recent years, pushed for changes at News Corp. (NASDAQ: NWSA), which is backed by the Murdoch family. For Snap, Katz, Dodge and Wang further ask for corporate governance changes and said Class A shareholders should be granted one vote per share. They noted that would only give the public a 36% voting share in the company, which they said was more in line with Meta and Alphabet Inc. Spiegel and his co-founder, Bobby Murphy, control Snap through a special voting class of shares. The company’s shares fell last week as European Union opened an investigation into its social network on how it verifies users’ age and tackles grooming and criminal activities targeting underage users. In February, its shares fell by the most in six months after the company reported a decline in daily users, partly driven by Australia’s ban on social media for children. Snap is also swept up in the national social media litigation in the US. While Snap settled just ahead of the first trial, the verdict against Meta and Google that came down last week is just the beginning in a longer line of similar cases against the three technology companies as well as TikTok. Founded in 2011 and having gone public in 2017, Snap has tried to find its footing as a public company over the years after it started as a disappearing messages company aimed at young people. It is now offering subscription products, planting its flag as a player in tech wearables and preparing to release its first consumer pair of augmented reality glasses later this year. “Snap should not continue doing what it has been doing,” Irenic said it its letter. “It’s not working.” “We have no doubt that your Second Act, saving Snap, the company, can be even more impressive than building Snap,” the investors said at the end of the letter.

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3/31/2026

LG Chem Shareholders Reject Activist Push, Back Management Strategy

Korea Bizwire (03/31/26)

Shareholders of LG Chem (KRX: 051910) on Tuesday rejected a slate of governance reforms proposed by the British investor Palliser Capital, siding instead with the company’s existing management structure. The proposals were voted down at the company’s annual general meeting, with opposition from the National Pension Service, LG Chem’s second-largest shareholder. The fund argued that the measures could encroach on the board’s authority and introduce unnecessary uncertainty. Palliser had called for a series of changes aimed at boosting shareholder value, including the introduction of advisory shareholder proposals, the appointment of a lead independent director and expanded monetization of LG Chem’s stake in its battery affiliate, LG Energy Solution (KRX: 373220). The fund also pushed for share buybacks, enhanced executive compensation tied to performance metrics and the adoption of financial indicators such as return on equity and net asset value discounts. The investor contended that LG Chem remained significantly undervalued, attributing the gap in part to the spin-off and dual listing of LG Energy Solution. Company executives, however, dismissed the proposals as overly broad and insufficiently structured, warning they could disrupt operations. The National Pension Service echoed those concerns, while noting that LG Chem has already outlined plans to unlock value from its stake in the battery unit. Shareholders separately approved the appointment of Kim Dong-choon, the company's recently named chief executive, as an inside director, consolidating leadership at a time of mounting industry pressures. Speaking at the meeting, Mr. Kim said the temporary shutdown of the company's No. 2 naphtha cracking center in Yeosu was driven by market conditions and would resume when demand recovers. He added that while LG Chem has secured naphtha supplies under U.S. sanctions exemptions, sourcing additional volumes has become more difficult amid escalating tensions in the Middle East. The outcome underscores the limits of shareholder activism in South Korea, where large institutional investors often prioritize stability over sweeping governance changes.

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3/31/2026

Palliser Capital Welcomes Majority-of-Minority Support for Proposals at LG Chem AGM

Yahoo! Finance (03/31/26)

Palliser Capital is encouraged by the outcome of LG Chem’s (KRX: 051910) Annual General Meeting today, at which Palliser’s proposals received robust support from the majority of LG Chem’s minority shareholders. This underscores unequivocal investor concerns relating to governance shortcomings and the Company’s capital allocation policy. While the voting influence of LG Corp (KRX: 003550) prevented Palliser’s resolutions from passing, the proposed resolutions to facilitate shareholder advisory proposals going forward and the appointment of a Lead Independent Director were supported by approximately 56% and 42%, respectively, of LG Chem’s independent minority shareholders. When excluding votes cast by the second-largest shareholder, the National Pension Service of Korea, minority shareholder support for these resolutions was even higher, with approximately 71% and 53% voting in favor, respectively. "This result represents a powerful signal from LG Chem’s minority shareholders," said James Smith, CIO at Palliser Capital. "A majority of independent investors voted in favor of change. This level of support underscores shareholders’ discontent with the status quo, including recent initiatives from the Company, as well as the growing expectation that LG Chem urgently reform its governance and capital management practices to take action on its deep valuation discount." "We encourage LG Chem’s Board and management, specifically the independent Chair, to engage constructively with shareholders and to respond meaningfully to the concerns expressed through this vote. Ignoring the voice of minority shareholders risks further eroding investor confidence." Palliser’s proposals were designed to enhance long-term shareholder value by strengthening accountability, improving transparency, and promoting better alignment between the interests of controlling and minority shareholders. Majority-of-minority support is widely recognized as a critical benchmark for assessing shareholder sentiment, particularly in companies with concentrated ownership structures. Palliser believes that today’s results should serve as a catalyst for LG Chem to take responsibility by adopting urgent measures to address the Company’s significant value gap, failing which shareholders will no doubt look to take the initiative with bolder measures necessary to further strengthen their rights. In the meantime, Palliser remains committed to continued dialogue with LG Chem and to advocating for governance reforms that support sustainable value creation for all shareholders.

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3/30/2026

LG Chem Woos Shareholders Ahead of Showdown with UK Hedge Fund

Korea Times (03/30/26) Jae-hyuk, Park

LG Chem (KRX: 051910) said Monday it will bolster its electronic materials business in an effort to double revenue from the segment to 2 trillion won ($1.3 billion) by 2030 from the current 1 trillion won. On the same day, CEO Kim Dong-choon of the company made his first treasury share purchase since taking office last November, disclosing that he bought 336 common shares on Wednesday for about 99.7 million won. The announcements came a day before LG Chem’s regular general shareholders’ meeting, where the company will face proxy engagement with Palliser Capital. The British hedge fund has called on the Korean chemical maker to boost shareholder value by selling part of its stake in LG Energy Solution (KRX: 373220) (LGES), its battery manufacturing subsidiary. Under its planned business portfolio restructuring, LG Chem aims to preemptively secure material technologies related to semiconductors, electronic devices and next-generation displays, with a stronger focus on higher value-added businesses. Emphasizing that Kim built his career over three decades in LG Chem’s semiconductor, electronics and advanced materials divisions, the company said he is leading the reform drive. “LG Chem has swiftly transformed its business portfolio from petrochemicals to advanced materials faster than any other company,” Kim said in a press release. “Building on its strong focus on next-generation materials, LG Chem will devote all its capabilities and technologies to become a technology-driven, high-value advanced materials company.” Following disclosure of his share purchase, LG Chem said the move reflects Kim’s intent to ensure the company’s long-term growth and strengthen shareholder value. In the fourth quarter of last year, LG Chem posted an operating loss of 413.3 billion won due to sluggish performance in its petrochemical, advanced materials and battery businesses. The company recently shut down one of its naphtha cracking centers due to a supply shortage stemming from the war in Iran. With its stock price remaining weak, Palliser has asked shareholders to support its proposed amendments to LG Chem’s articles of association, which would allow nonbinding advisory shareholder proposals at shareholders’ meetings and the appointment of a lead independent director. If the proposals pass, shareholders would later vote on Palliser’s suggestions to disclose discounts to net asset value, review executive compensation and accelerate the monetization of LG Chem’s stake in LGES. Although Palliser has received support from several global pension funds and proxy advisory firms, the National Pension Service announced it will oppose the proposals, expressing concern that they could restrict the board’s authority. The state-run pension fund is LG Chem’s second-largest shareholder, holding an 8.56% stake. LG Group’s holding company, LG Corp. (KRX: 003550), is the largest with a 34.95% stake. Given this structure, Palliser is unlikely to prevail in the upcoming vote. Still, LG Chem appears determined to defeat the fund by a wide margin to defend its new leadership, particularly as the government pushes policies favoring minority shareholders. After Palliser launched its campaign last October, LG Chem said in January it would cut its stake in LGES to 70% from 79.4% over the next five years. Last month, the company appointed an outside director to chair its board for the first time, saying the move would strengthen the board’s independence and enhance management transparency.

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3/30/2026

EagleBank Disavows Diligence Capital Management’s Board Nominees

Banking Dive (03/30/26) Ennis, Dan

EagleBank (NASDAQ: EGBN) is disregarding the three board nominees Diligence Capital Management has suggested, the embattled Maryland lender told its shareholders last week. The slate of nominees that Diligence floated earlier this month, along with four proposals meant to improve EagleBank’s performance, are “invalid” because the investor’s notice failed to comply with the bank’s amended bylaws, Eagle said. Further, Eagle said, Diligence Capital is not a shareholder of record and is ineligible to submit a notice indicating that it intends to nominate director candidates or submit business proposals for the bank. Diligence holds roughly 27,500 shares, or less than 0.1%, of Eagle stock. Moreover, Eagle sent to its shareholders proxy cards that did not include Diligence’s suggestions but included a separate new board nominee, Trevor Montano. Montano is the founder of Washington, D.C.-based private investment firm West Potomac Capital who previously spent three years as the chief investment officer at the Treasury Department. “Trevor’s experience as a public company director and advisor to financial institutions enables him to provide valuable insights and support our ongoing efforts to optimize and diversify our loan portfolio, strengthen our deposit base, invest in innovation and capitalize on our market position,” EagleBank’s board chair, Jim Soltesz, said in a statement. Eagle’s annual meeting, where board nominees will stand for election, is May 14. But no proxies with votes in favor of Diligence’s candidates will be recognized or tabulated at the meeting, the bank said, unless the investor takes the matter to court, and the court agrees with Diligence. Diligence CEO Jim Abbott told American Banker last week that a court fight would likely waste valuable resources. “The best approach is to focus all time and efforts and money on the actual turnaround,” he told the publication. “So we’re not interested in spending a lot of time and money and effort to create zero forward progress.” Among its proposals, Diligence wants Eagle to develop a three-year performance improvement plan with specific benchmarks — and for executive compensation to tie into those metrics. Eagle last year reported consecutive quarters with earnings losses of $69.8 million and $67.5 million, respectively. The bank leans heavily into commercial real estate, but its woes predate the immediate past. The bank agreed in 2022 to pay a $22.9 million penalty to the Securities and Exchange Commission and the Federal Reserve to settle claims that its former CEO, Ronald Paul, engaged in insider lending. Paul – who retired in 2019, citing health concerns – has been banned from working in the banking industry. Eagle is looking for its next CEO, too. The bank's current chief executive, Susan Riel, said in November that she would retire this year. In its notice to shareholders, Eagle acknowledged there is no litigation pending from Diligence. However, if a court fight arises, the bank would issue an amended proxy card including Diligence’s nominees. In that case, the annual meeting would be postponed, the bank said. Abbott, however, said the goal is to improve the bank “in the least disruptive way … so that they can make progress.” “But if the company is not making progress, then we need to do something disruptive,” he said. Also among Diligence’s proposals, the investor seeks transparency into Eagle’s plan to dispose of problem loans. It also wants the bank to separate its chair and CEO roles until certain key performance indicators are met. Abbott is among the nominees Diligence is floating to join Eagle’s board. Soltesz, Eagle’s chair, is among the directors Diligence wants to replace.

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3/27/2026

Norwegian Cruise Line to Overhaul Board After Truce With Elliott

Wall Street Journal (03/27/26) Hart, Connor

Norwegian Cruise Line Holdings (NCLH) said it will reshape its board after reaching a truce with Elliott Investment Management, as the cruise operator works to address operational missteps that have weighed on performance. The cruise operator said Friday it will appoint five new independent directors including Alex Cruz, former chief executive of British Airways, and Kevin Lansberry, who previously served as finance chief for Disney’s (NYSE: DIS) Experiences division. Four current directors will step down as part of the changes. Chief Executive John Chidsey will take on the additional role of chairman, while Cruz will serve as lead independent director. The changes come after Elliott last month disclosed a more-than-10% stake in the line and said it would push for changes to turn the struggling company around. Instead, the two sides reached a cooperation agreement, under which Elliott agreed to customary standstill and voting provisions, Norwegian said. Norwegian has been under pressure following a series of operational and strategic missteps that have weighed on earnings and investor sentiment. Earlier this month, the company reported sharply lower quarterly profit and said its 2026 performance would be hurt by the mistiming of a Caribbean capacity expansion and weaker-than-expected bookings. And now, higher fuel costs tied to escalating geopolitical tensions are expected to weigh on margins. Chidsey, who took over as chief executive last month, has said the company is focused on improving execution, reducing internal complexity and better aligning its commercial strategy, including pricing, marketing and itinerary planning. Elliott has argued that Norwegian has underperformed peers such as Royal Caribbean (NYSE: RCL) and Carnival (NYSE: CCL), and has called for improvements in both financial performance and the guest experience. Elliott previously said that, with the right strategy, it sees a path for Norwegian’s stock to reach $56 per share. Norwegian’s stock was down 1% to $19.65 in early trading Friday. Shares have lost nearly a fifth of their value over the past month, and are at about breakeven for the past year.

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