Investor Communications Network, LLC


Knocking on the Door

The Activist Report - Volume 2 Issue 10 - October, 2012

Often activist investors will acquire just below 5% of a company’s stock and begin conversations with Companies before filing a 13D,. Below are some companies that are close to the 13D threshold on a potential activist investment.

Abercrombie & Fitch Co. (ANF): Relational Investors owns 4.95% and has been succesfully lobbying the Company to consolidate its US stores and curtail rolling out its fl agship stores until better visibility in the macro environment. They would also like to see the Company take a serious look at its cost structure, with a keen focus and S,G&A, as it signifi cantly outspends its peer group.

Agrium Inc. (AGU): JANA Partners, is the largest stockholder of Agrium, with over 4.5% and has proposed that the Company commit to a larger and more consistent return of capital going forward, improve disclosure in its retail distribution business, initiate a working capital and operational cost reduction plan in Retail, rationalize unallocated corporate overhead and pursue a separation of Retail and its wholesale fertilixer busuness .

Murphy Oil (MUR): Third Point LLC may be dipping its toe back in the activist waters once again as it continues to see low hanging fruit, this time in the form of Murphy Oil. Third Point reported owning under 1% as of June 30 but has certainly been buying more shares prior to disclosing to investors its activist intentions (See attached excerpt from its invetor letter on Page 10). Third Point advocates for spinning off the company’s retail business, selling its Canadian natural-gas assets, selling its stake in the Syncrude Oil Sands project, and completing a U.K. Refi ning business exit that is costing Murphy $500 million in working capital.