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4/29/2029

Shareholder Activism in Asia Drives Global Total to Record High

Nikkei Asia (04/29/29) Shikata, Masayuki

Activist shareholders had their busiest year on record in 2024, with the Asia-Pacific region making up a fifth of campaigns worldwide, pushing some companies higher in the stock market and spurring others to consider going private. The worldwide tally of activist campaigns rose by six to 258, up by half from three years earlier, according to data from financial advisory Lazard. Campaigns in the Asia-Pacific tripled over that period to 57, growing about 30% on the year. Japan accounted for more than 60% of the regional total with 37, an all-time high. Activity is picking up this year as well in the run-up to general shareholders meetings in June. South Korea saw 14 campaigns, a jump of 10 from 2023. Critics say South Korean conglomerates are often controlled by minority investors that care too little about other shareholders. Australia and Hong Kong saw increases of one activist campaign each. North America made up half the global total, down from 60% in 2022 and 85% in 2014. Europe had 62 campaigns last year. The upswing in Japan has been fueled by the push for corporate governance reform since 2013 and the Tokyo Stock Exchange's 2023 call for companies to be more mindful of their share prices. The bourse has encouraged corporations to focus less on share buybacks and dividends than on steps for long-term growth, such as capital spending and the sale of unprofitable businesses. Demands for capital allocation to improve return on investment accounted for 51% of activist activity in Japan last year, significantly higher than the five-year average of 32%. U.S.-based Dalton Investments called on Japanese snack maker Ezaki Glico (2206) to amend its articles of incorporation to allow shareholder returns to be decided by investors as well, not just the board of directors. Though the proposal was rejected, it won more than 40% support, and Glico itself put forward a similar measure that was approved at the following general shareholders meeting in March. U.K.-based Palliser Capital took a stake last year in developer Tokyo Tatemono (8804) and argued that more efficient use of its capital, such as selling a cross-held stake in peer Hulic, would boost corporate value. Activist investors are increasingly seeking to lock in unrealized gains from rising land prices, reaping quick profits from property sales that can go toward dividends. Companies in the Tokyo Stock Exchange's broad Topix index had 25.88 trillion yen ($181 billion at current rates) in unrealized gains on property holdings at the end of March 2024, up about 20% from four years earlier. After buying into Mitsui Fudosan (8801) in 2024, U.S.-based Elliott Investment Management this year took a stake in Sumitomo Realty & Development (8830) and is expected to push for the developer to sell real estate holdings. This month, Dalton sent a letter to Fuji Media Holdings (4676), parent of Fuji Television, calling for it to spin off its real estate business and replace its board of directors. Activist campaigns have sparked share price rallies at some companies. Shares of elevator maker Fujitec (6406) were up roughly 80% from March 2023, when it dismissed Takakazu Uchiyama -- a member of the founding family -- as chairman under pressure from Oasis Management. The rise in demands from activists "creates a sense of tension among management, including at companies that don't receive such proposals," said Masatoshi Kikuchi, chief equity strategist at Mizuho Securities. Previously tight cross-shareholdings are being unwound, and reasonable proposals from minority investors are more likely to garner support from foreign shareholders. Some companies are going private to shield themselves from perceived pressure. Investments by buyout funds targeting mature companies in the Asia-Pacific were the highest in three years in 2024, according to Deloitte Touche Tohmatsu. Toyota Industries (6201) is considering going this route after facing pressure from investment funds last year to take steps such as dissolving a parent-child listing with a subsidiary and buying back more shares. Toyota Industries holds a 9% stake in Toyota Motor (7203). The automaker "may have proposed having [Toyota Industries] go private as a precautionary measure," said a source at an investment bank.

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1/16/2027

Dealmakers See More Retail Mergers and IPOs in 2026 After Tariffs Sidelined M&A Last Year

Reuters (01/16/27) Summerville, Abigail

Dealmakers predict an uptick in mergers and IPOs for retailers and consumer goods companies this year after punishing tariffs on imports to the United States had sidelined activity in the industry for the first half of 2025. Several national restaurant and convenience store chains are primed for IPOs, along with organic baby food company Once Upon a Farm, Hellman & Friedman-backed auto repair company Caliber Holdings, and Bob’s Discount Furniture, which is owned by Bain Capital, according to more than two dozen CEOs, M&A advisors and private equity investors who attended the ICR Conference in Orlando, Florida this week. “The number of high-quality companies that are in queue to go public in 2026 is higher than we’ve seen since 2021,” Ben Frost, Goldman Sachs' (GS) global co-head of the consumer retail group said in an interview. “The question is does that mean more will go public? If it does, private investors will see the ability to exit investments again (in a) regular way, which will help (private equity) activity.” Frost was one of the more than 3,000 attendees at the annual gathering, where executives from Walmart (WMT.O), Shake Shack (SHAK.N), and Jersey Mike’s were among presenters while bankers, lawyers and private equity investors spent much of their time brokering deals and landing clients behind the scenes. The upbeat mood was a marked shift from last spring after U.S. President Donald Trump's "Liberation Day" tariff announcements sent markets skidding and killed or stalled several consumer and retail deals. The second half of the year saw a resurgence in activity that brought with it several mega deals, including Kimberly-Clark’s (KMB.O) nearly $50 billion deal to buy Kenvue (KVUE.N), announced in November. "(Companies) are still really focused on growth and synergies. They’re looking at bigger deals than they’ve been willing to do for the last number of years. The back half of last year was the start of that,” Frost said. Kraft Heinz (KHC.O) announced in September it would split into two companies to unwind its 2015 merger, shortly after Keurig Dr Pepper (KDP.O) had agreed to buy JDE Peet’s for $18 billion with plans to split the coffee and non-coffee beverages into separate companies. In apparel, Gildan Activewear (GIL) bought Hanesbrands for $2.2 billion. Investors could also spur more deals and corporate breakups in the sectors, Audra Cohen, co-head of the consumer and retail group at law firm Sullivan & Cromwell, said in an interview at the conference. Corporate agitators have taken recent stakes in Lululemon Athletica (LULU.O) and Target (TGT.N), but aren't yet pushing for M&A. Lululemon hosted a morning yoga class and its management team met with analysts and investors at the conference. Meanwhile, private equity buyers are beating out companies for some deals, Manna Tree Partners co-founder Ellie Rubenstein told Reuters. Her firm sold its cottage cheese brand Good Culture to a larger consumer-focused firm L Catterton just last week. “A lot of these brands have gotten lost (inside big corporations) and the consumers don’t like it. You may see a lot of corporate carveouts this year,” Rubenstein told Reuters in an interview after her keynote address. She interviewed her billionaire father and Carlyle co-founder David Rubenstein, 76, on stage at the conference. The father-daughter pair contrasted their portfolios, pointing to Carlyle’s history of investing in fast food chains like McDonald's (MCD.N) and KFC Korea while Manna Tree saw big returns from investments in healthier food brands like pasture-raised egg producer Vital Farms (VITL.O) and Good Culture.

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10/16/2026

Japan’s Top Investor Has Plans for Its Scandal-Hit Corporates

Bloomberg (10/16/26) French, Alice

Japan is experiencing a surge in mergers and acquisitions, with Oasis Management playing a significant role in several potential deals involving Kakaku.com (TYO: 2371), Kobayashi Pharmaceutical (TYO: 4967), and troubled motor manufacturer Nidec (TYO: 6594). Led by Seth Fischer, the Hong Kong-based fund has more than $13 billion in disclosed equity stakes, making it Japan’s largest investor by portfolio value and one of the world’s most active, launching 18 campaigns in the first half of 2026. Oasis has increased its stake in Nidec, overtaking founder Shigenobu Nagamori’s holdings amid an accounting scandal that threatens the company’s future. Fischer is urging Nidec to solicit buyout offers and prepare for a possible privatization, warning that shareholders could suffer if the company is delisted without a contingency plan. He is also advocating for a competitive acquisition process at Kobayashi Pharmaceutical. Japan’s corporate governance reforms have encouraged greater transparency, capital efficiency, and shareholder engagement, creating opportunities for investors and supporting stock-market gains. However, Prime Minister Sanae Takaichi’s criticism of excessive shareholder returns and proposed restrictions on shareholder proposals have raised concerns about potential political resistance. Meanwhile, returns are slowing as competition increases and easy opportunities diminish. Despite these challenges, Fischer remains optimistic, plans to buy more Nidec shares, and expects activism in Japan to expand further.

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10/16/2026

Hedge Funds Bet Japan Reforms Have Further to Run at Sohn Tokyo

Reuters (10/16/26) Zhen, Summer; Swift, Rocky

The next phase of Japanese corporate reform took center stage at the Sohn Conference in Tokyo, as hedge fund managers highlighted investment opportunities ranging from a financial conglomerate's capital allocation strategy to an X-ray scattering firm's AI solutions. At the inaugural Sohn Conference in Japan, which invited 14 funds to pitch their top investment ideas, more than half of the investors favored the theme of corporate reform. Daisuke Nakayama, a portfolio manager at Hong Kong-headquartered Polymer Capital, picked Orix Corporation (NYSE: IX), a financial services firm, saying the change in management marks "a big turning point" for the company's transformation into a global investment firm. "The new leadership has a greater focus on capital allocation and ROE," Nakayama said, adding the firm is now using overseas capital, including from Qatar Investment Authority, to bid for companies. The number of activist campaigns in Japan hit a record last year, according to brokerage Jefferies (NYSE: JEF), after years of pressure from regulators and the Tokyo Stock Exchange on companies to improve shareholder returns and invest in growth. Fund managers said that the next chapter is not just about companies increasing dividends and buybacks but also about focusing on those deploying capital to expand businesses and drive long-term growth. One example is Rigaku (TYO: 268A), an X-ray equipment supplier pivoting to semiconductor metrology, measuring and inspecting chips. New York-based Indus Capital Partners said it had invested in the company and had engaged with the firm to sell a stake to a U.S. semiconductor firm to drive revenue. As semiconductor companies are going into vertical structures to scale, X-ray is needed to detect defects deeper in the 3D chips, said Byron Gill, managing partner at Indus. Rigaku might be one of the few companies that "has the key to unlocking scale for the semiconductor industry in the middle of a super cycle," he added, forecasting a 100% rise in its valuation by 2029. The corporate reform theme still has a long way to run, market participants said. "Japan changes slowly, but once the change starts, it does not reverse," said Naohide Une, partner and CEO at Investment Lab, a former senior managing director at Japan Post Bank (TYO: 7182). He picked Japanese chemical company Ube Corporation (TYO: 4208) for its corporate reform efforts. In a separate Q&A session, Seth Fischer, founder of Oasis Management, said his fund may substantially increase its stake in Japanese electric motor maker Nidec (TYO: 6594). AI was another key investment theme. Investment firms Ruane Cunniff and Japan Catalyst picked software companies Money Forward (TYO: 3994) and OBIC Business Consultants (TYO: 4733), respectively. They argued that back-office software operators are AI winners rather than losers, as clients require accuracy. And these businesses are helping Japan overcome labor tightness, they said.

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10/15/2026

Shareholder Activism During Q3 Slows as M&A Demands Increase, Says Barclays

Financial Regulation News (10/15/26) Riley, Kim

Shareholder activism slowed slightly following a busy first half of 2026, but the global activist landscape continued to evolve, according to Barclays Corporate Finance Advisory’s Q3 2026 Review of Shareholder Activism report. The report highlights record APAC activity, rising mergers and acquisitions (M&A) demands, and a shrinking pool of activists launching campaigns, according to the firm. “After a relatively quiet proxy season, we’ll be watching closely to see how activist strategies evolve in the months ahead,” said Jim Rossman, global head of shareholder advisory at Barclays Investment Bank. Key takeaways from the report include that global shareholder activism slowed during the third quarter of 2026 with 43 campaigns launched worldwide, returning activity to more typical seasonal levels after elevated H1 activity. “Shareholder activism slowed marginally in Q3, with 43 campaigns launched globally, bringing year-to-date activity to 179,” the report says. “While this represents a 7% decline compared with 2025, activity remains broadly in line with the four-year average.” Additionally, APAC recorded its highest share of shareholder activism campaigns. “While the Untied States. remained the dominant forum for activism, APAC accounted for a record 31% share of global campaign activity, with Japanese targets attracting the majority,” the report says. M&A was the leading focus of shareholder activists in Q3 2026 with M&A-related demands representing 58% of all campaign objectives, rebounding from below-average levels earlier in the year, according to the report. At the same time, shareholder activism activity became increasingly concentrated by sector with a record 82% of campaigns targeting companies in five sectors led by Industrials and Technology, Barclays (NYSE: BCS) said. Meanwhile, board seat wins remained below the four-year average following fewer United States settlements and contested fights, said the report.

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10/11/2026

Gold Fields Executives Head to Perth as Northern Star Prepares Defensive Mine Sales

The Australian (10/11/26) Carter, Bridget

Executives working at Northern Star’s (ASX: NST) suitor Gold Fields (NYSE: GFI) will be burning up the tarmac in Perth later this month, as they fly in from South Africa. The understanding is that the Gold Fields executives will stay through to November, when they will attend site visits. Gold Fields has its own assets in Australia to attend to such as the Gruyere Gold mine, which it now owns outright after its buyout of Gold Road Resources (ASX: GOR). But some wonder whether talks with Northern Star executives and visits to Northern Star mines will be part of the trip as well. Northern Star, the country’s largest listed gold miner, has already rejected a $38.7 billion offer from Gold Fields, which was a cash and scrip bid valuing the company at $27 per share. Sources believe the group needs to return with an offer close to $30 per share to get a deal done. Part of the problem for Northern Star is that it has lost much of its management team, which is likely to make a takeover offer all the more attractive for some investors. It comes as DataRoom earlier reported that Northern Star's senior executives and investment banking advisers had already progressed preparations for non-core asset sales, in what will be a defensive tactic to fend off takeover attempts by the South African miner. The understanding is that some soft soundings or informal conversations may have been started by Northern Star's investment bank, Goldman Sachs (NYSE: GS), with prospective buyers for the assets before any formal sale campaign begins. High carrying values of the assets could be an impediment, say sources. On offer are expected to be mines including Carosue Dam in Kalgoorlie, Jundee northeast of Wiluna, Kanowna Belle, all part of its Kalgoorlie operations, and Bronzewing operations northeast of Leinster. That would leave Northern Star with the Super Pit mine, its Pogo operations, its Hemi development, Thunderbox operations and Kalgoorlie mill. Ramelius Resources is the most likely buyer for Carosue Dam, which alone could command a price of about $800 million. The final call on asset sales will likely come from Northern Star's new chief executive, Suresh Vadnagra, who has just started at the firm. It comes as Northern Star deals with pressure from Elliott Investment Management, as well as Gold Fields' approaches. Gold Fields, which is advised by JPMorgan (NYSE: JPM) and Bank of America (NYSE: BAC), offered 0.3125 Gold Fields shares and $7.25 a share in cash, taking the total value to $27. The offer on September 14 was a 22% premium to the September 11 share price, but the Gold Fields share price later fell, making the offer closer to $22. The offer comes amid a campaign by shareholder Elliott Management and after the departure of former chief executive Stuart Tonkin, who left after a string of production forecast downgrades linked to the Kalgoorlie mill expansion. Elliott Management owns 6.24% of Northern Star.

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10/7/2026

PepsiCo Running Out of Time to Meet Elliott-inspired Targets as GLP-1 Threat Intensifies

Reuters (10/07/26) Marrow, Alexander; Mistry, Anuja Bharat

PepsiCo (NASDAQ: PEP) is under growing pressure to deliver the growth and margin improvements promised after Elliott Investment Management acquired roughly a $4 billion stake last year. The company’s North American snacks business remains weak, with volumes and market share declining despite price cuts, new products, marketing, and productivity efforts. Its core operating margin fell to 16.3% in the first half, moving away from Elliott-inspired targets for a 100-basis-point improvement over three years. Meanwhile, GLP-1 weight-loss drugs are accelerating consumer interest in healthier foods and beverages, threatening PepsiCo’s traditional snacks and soda portfolio. PepsiCo has responded with products such as Doritos Protein and SunChips Fiber, but investors remain skeptical. PepsiCo’s valuation has fallen sharply relative to Coca-Cola, while its shares are down nearly 12% this year and about 16% since Elliott’s investment. Analysts expect third-quarter revenue to rise 4.3% to $24.96 billion, with adjusted earnings of about $2.29 per share. Investors will focus on whether North American snack volumes, margins, and beverage pricing power are beginning to stabilize.

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10/6/2026

Late Filings by Situational Awareness Expose Gap in Japan Disclosure Rules

Nikkei Asia (10/06/26) Muto, Jun

Japan’s large-shareholder disclosure system is facing scrutiny after U.S. hedge fund Situational Awareness failed to promptly report its growing stake in electronic components maker Taiyo Yuden (TYO: 6976). The fund crossed Japan’s 5% reporting threshold on June 29 but did not file the required report by July 6, eventually submitting nine filings on Aug. 12 that revealed its stake had reached 16.61% by July 22. Japanese law requires investors exceeding 5% ownership to disclose their holdings within five business days, with additional filings required for changes of at least one percentage point. Late filings are relatively common, with about 1,500 occurring annually between 2019 and 2022, but enforcement has been limited, particularly against overseas investors. Only two cases have resulted in penalty recommendations since 2019. Current fines are also considered too small to deter violations. Japan’s Financial Services Agency plans to significantly increase penalties as early as 2027, while experts recommend more regulator staffing, greater ownership transparency, and potential voting-rights suspensions for violators.

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10/6/2026

Commentary: CVC's Cheeky Italian Drug Buyout Will Likely Work

Reuters Breakingviews (10/06/26) Proud, Liam

CVC Capital Partners (AMS: CVC) has raised its takeover offer for Italian pharmaceutical company Recordati (BIT: REC) to €53 per share, valuing the deal at about €11 billion, but minority investors continue to argue that the price is too low. Palliser Capital has called for at least €60 per share, close to the average analyst target, citing Recordati’s fast-growing rare-disease business. The revised offer represents only a 16.6% premium to Recordati’s undisturbed March price, while comparable pharmaceutical companies have gained about 14% since then. Recordati’s independent directors also judged the bid inadequate and unfair, while a Rothschild valuation exercise commissioned by them generally produced higher values. Nevertheless, CVC and its partner, Groupe Bruxelles Lambert, appear capable of securing the two-thirds shareholder support needed to complete the transaction. CVC already owns 47%, while the consortium controls roughly another 10% through additional positions, including derivatives. The bidders can potentially increase their holdings in the market at €53 or less. Reaching 67% would allow them to take Recordati private, potentially leaving minority shareholders with an illiquid investment or forcing them to sell. The threat of a backdoor delisting may ultimately persuade shareholders to accept the offer despite concerns over valuation.

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