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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3/27/2026

Recommendations by Korean Proxy Advisors Signal Strong Support for Palliser’s Proposals Ahead of LG Chem AGM

Business Wire (03/27/26)

Palliser Capital welcomed additional support from leading Korean proxy advisory firms for its proposals at the upcoming Ordinary General Meeting of LG Chem, Ltd. (KRX: 051910). Korea Corporate Governance Service and Sustinvest have recommended that shareholders vote in favor of key elements of Palliser’s proposals, including measures aimed at strengthening governance by ensuring minority shareholders have a voice within the boardroom. Their recommendations build on earlier support from Institutional Shareholder Services and Glass, Lewis & Co., further reinforcing momentum behind Palliser’s calls for the company to address its KRW 60 trillion (US$41 billion) value gap. With support from multiple independent proxy advisors, both international and Korean, Palliser is urging LG Corp. (KRX: 003550), the company’s largest shareholder, to consider these recommendations responsibly and vote in favor of steps to strengthen governance, improve transparency and capital allocation, and address the persistent discount at LG Chem. Beyond Korea, key global institutional investors such as Norges Bank Investment Management, CalPERS, and British Columbia Investment Management have begun to disclose votes in favor of the proposals, signaling growing shareholder support. James Smith, Founder and Chief Investment Officer of Palliser, said: “This level of support from global and Korean proxy advisors and institutional investors reflects a clear consensus that governance at LG Chem must improve. We urge all shareholders, including LG Corp., to follow these recommendations and, in particular, to support Proposal #2.7 to ensure meaningful representation for minority shareholders.” Palliser's Proposal #2.7 would enable advisory proposals to be put up at shareholders’ meetings, allowing shareholders to express their views on key value-enhancing initiatives, including Proposals #3.1–3.3. Proposals #3.1–3.3 relate to key value-enhancing governance and disclosure measures. Proposal #2.8 would enable the appointment of a Lead Independent Director with specific responsibilities to serve as a representative of the independent directors and act as a bridge between the Board and minority shareholders.

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3/27/2026

Impactive's Proxy Fight at WEX May Hit Regulatory Snag, Filing Says

Reuters (03/27/26) Herbst-Bayliss, Svea

Impactive Capital's board challenge at payment processing and information management services company WEX (WEX.N) may hit a speed bump after the company said this week the investor has not filed potentially critical paperwork. The Federal Deposit Insurance Corporation and the Utah Department of Financial Institutions (UDFI) said Impactive may need to submit applications to press on with its proxy fight, but that it has not yet done so. Impactive spent nearly a year laying the groundwork for what is shaping up as a closely watched and bitter board fight in which the hedge fund wants shareholders to kick out sitting directors and vote in four newcomers, including one of Impactive's co-founders, Lauren Taylor Wolfe. New directors should help management focus on disciplined pricing, cost efficiency and simplifying the business to improve returns and unlock shareholder value, Impactive has said over the last year. But WEX's filing, made on Tuesday and not previously reported, signaled there could be trouble ahead. "Impactive's failure to file such applications with such bank regulators and obtain their prior approval could result in the invalidation of any voting of proxies obtained by Impactive for the annual meeting," the filing said. Impactive owns roughly 5% of WEX and last month named the four director candidates it wants shareholders to elect. A representative for Impactive said the hedge fund "will of course comply with all relevant regulatory requests made as part of the proxy contest process," adding, "As always, we are committed to enhancing value at WEX for all shareholders." A representative for WEX declined to comment. WEX, which has a market value of $5.3 billion, is primarily focused on fleet management, corporate payments, and employee benefits. Its board and management team have considered Impactive's input on strategy, capital allocation, and board composition, Reuters previously reported. WEX owns and operates WEX Bank, a Utah-based industrial-chartered bank, and is therefore regulated by the FDIC and UDFI. The company has not yet set a date for the 2026 annual meeting after last year's meeting was held in May. For nearly a year, Impactive, run by Taylor Wolfe and Christian Asmar, has urged faster progress at WEX, including suggestions the company consider spinning off its benefits segment and adding an investor to the board. WEX said in the filing that it tried to settle the standoff this month by proposing to add Impactive's two independent candidates. Impactive, the filing said, asked for a board seat for an Impactive principal and one of the independent candidates.

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3/27/2026

Irenic Capital Management Urges Teleflex to Explore Sale, Oust Stephen Klasko from Chairman Role

Philadelphia Business Journal (03/27/26) George, John

Teleflex Inc. (NYSE: TFX) has pushed back on claims made by an investor that the Wayne-based medical device company has not engaged with potential acquirers despite receiving interest from "multiple credible parties." Irenic Capital Management sent a letter Friday to Teleflex's board, led by former Jefferson Health CEO Dr. Stephen Klasko, urging it "to immediately take a more constructive and responsible approach to evaluating strategic alternatives." Irenic called for the company to consider acquisition offers, make meaningful board changes including replacing Klasko with a new chairman, and engage independent advisers to evaluate potential transactions. Irenic is one of the largest shareholders of Teleflex with a 2% ownership stake. The investment firm did not identify the parties it said had interest in buying Teleflex. Teleflex responded to the Irenic letter with a statement Friday afternoon saying its board and management team are committed to acting in the best interests of the company and its shareholders. "Teleflex’s board has clearly demonstrated its willingness to consider all paths that enhance value for shareholders," the company stated. "Teleflex has not rebuffed inbounds from potential acquirers or received proposals to acquire Teleflex. … The Board would thoroughly and thoughtfully consider any bona fide acquisition proposal in the context of the long-term value inherent in the business." Founded in 1943, Teleflex develops and manufactures devices used by hospitals and other health care providers for surgeries, and critical care and vascular access. The company agreed in December to sell three business divisions to two buyers for a combined $2.03 billion. Irenic said in its letter that representatives of the firm expressed their concerns to Klasko. "He made clear to us that, in his view, it did not make sense to even have a conversation with interested parties at this point – regardless of how much such parties might be willing to pay for Teleflex," the letter states. "We firmly believe that posture is unreasonable and irresponsible." In its response, the company said it met with Irenic on March 19 and the investment firm is now "grossly mischaracterizing" the discussion — in particular the words of Klasko. "Further, Irenic’s statement that 'the board has directed the Company’s advisors to refuse approaches from potential acquirors' is patently false," Teleflex said in its statement. Teleflex is in the midst of a CEO search following the January departure of Liam Kelly. Irenic stated in its letter that Telefex said it was making strategic decisions during its CEO search with the goal of maximizing shareholder value. Irenic noted Teleflex's shareholder return over the past five years is down 73%. "We do not believe this board has earned the right to unilaterally determine how value is best created on shareholders’ behalf, and particularly not before it has thoroughly assessed all potential alternatives," Irenic stated. Teleflex agreed to sell its original equipment manufacturer business in December to a partnership of private equity firms Montagu of London and Kohlberg of New York for $1.5 billion. In a separate transaction, Teleflex will sell its acute care and interventional urology businesses to United Kingdom-based Intersurgical Ltd. for $530 million. Both deals are subject to regulatory approval and are expected to be completed during the second half of 2026. Teleflex posted a net loss of $905.6 million in 2025 on revenue of $1.99 billion. The company said the loss reflected the impact of one-time impairment charges, restructuring and discontinued operations. It earned $69.7 million in 2024 on revenue of $1.7 billion. Shares of Teleflex were up 5% to $116.26 in mid-afternoon trading Friday.

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3/26/2026

Korea Pension Fund Backs KT, LG Chem Firectors, Rejects Buybacks, Proposals

Chosun Biz (South Korea) (03/26/26) Yoo-joeng, Kwon

The National Pension Service supported the appointment of the CEO and inside directors among the agenda items at the KT (NYSE: KT) and LG Chem (KRX: 051910) shareholders' meetings, while voting against the plan to dispose of treasury shares and against the shareholder proposal. The National Pension Fund stewardship responsibility expert committee held its sixth meeting on the 26th and reviewed how the National Pension Service would exercise its voting rights on agenda items for the regular shareholders' meetings of KT, LG Chem and Hyundai Rotem (KRX: 064350). First, the stewardship committee decided to support the appointments of CEO Park Yoon-young, inside director Park Hyun-jin and outside director Yoon Jong-soo among the agenda items for KT's shareholders' meeting to be held on the 31st of this month. However, it opposed the agenda item to approve the plan to hold and dispose of treasury shares, saying it was inconsistent with the previously disclosed purpose of "enhancing shareholder value." For the LG Chem shareholders' meeting to be held the same day, the stewardship committee decided to support the appointment of CEO Kim Dong-chun as an inside director while voting against the shareholder proposal from the U.K.-based hedge fund Palliser Capital. Recently, Palliser Capital submitted a shareholder proposal calling for the introduction of advisory shareholder proposals, the appointment of a lead independent director, and the repurchase and cancellation of treasury shares. Palliser Capital holds 0.67% equity in LG Chem. Regarding the "agenda item to amend the articles of incorporation to introduce advisory shareholder proposals," the committee explained, "We determined that the amendment, which would allow proposals to make the company's governance structure, capital allocation policy and executive compensation policy matters for the shareholders' meeting, could limit the board's authority." It also decided to oppose the agenda item to amend the articles to appoint a lead independent director, judging that "given that the board chair is currently an outside director and the role is separate from the CEO, there is little need to have a separate lead independent director." The committee also opposed the overhaul of the executive compensation system linked to the introduction of advisory shareholder proposals. The item would introduce equity-linked compensation and reflect the NAV (net worth asset value) discount rate and return on equity (ROE) in the key performance indicators (KPI). The committee explained, "The company has already disclosed a plan to monetize its equity in LG Energy Solution (KRX: 373220), and if equity monetization proceeds according to the shareholder proposal, it could negatively affect shareholder value." For the Hyundai Rotem shareholders' meeting on the 27th, the committee decided to support all items, including the appointment of President Lee Yong-bae as an inside director, the appointments of inside directors Cho Hyung-jun and Jeong Jae-ho, and the appointment of outside director Kwak Se-bung as a member of the audit committee.

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3/26/2026

Kadokawa’s Shareholder Oasis Management Raises Stake to 11.85%, Exceeding Sony’s

Automaton (03/26/26)

Oasis Management Company, a Hong-Kong based international hedge fund management firm, has acquired additional shares in major Japanese manga and game publisher Kadokawa (9468.T), as reported by GameBiz. According to the amended version of a report submitted to the Financial Services Agency, the number of shares held by Oasis increased from over 14 million to over 17 million, with its ownership percentage rising from 10.00% to 11.85%. A week ago, on March 19, we reported that Oasis had acquired an 8.86% stake in Kadokawa, exceeding the 5% threshold for “large shareholders.” Only five days later, it was revealed that Oasis had bought additional shares in Kadokawa, pushing their ownership percentage up to 10% (Source: GameBiz). With seemingly no time to waste until the general shareholders meeting scheduled for June, as mentioned earlier, the investor has yet again increased its stake, owning 11.18% of Kadokawa at the time of writing. As a result, Oasis has now become one of Kadokawa's largest shareholders, even exceeding Sony's 10.09% stake. To provide some background, Oasis Management Company is known as an activist investor, meaning that it seeks to buy significant stakes in companies in order to influence how they are managed, usually with the purpose of increasing shareholder returns (not to be confused with political activism). Asides from putting pressure on multiple major companies in Japan, within the video game industry, the fund is somewhat infamous for urging Nintendo to “immediately enter the mobile market” back in 2014. Earlier this month, Oasis stated that the purpose of its acquisition of Kadokawa shares is “portfolio investment” and “important proposal activities” in the interest of “protecting shareholder value.” While the fund hasn't announced anything specific so far, we will probably see whether and how the huge acquisition reflects on Kadokawa's leadership once June's general shareholders meeting is in session.

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