Media Center

8/21/2019

Ferguson Risks Shareholder Rift With Talk of U.S. Move

Financial Times (08/21/19) Mooney, Attracta; Pooler, Michael

Ferguson (FERGY) has sought the opinion of shareholders regarding switching its listing from the United Kingdom to the United States as it looks to fend off Nelson Peltz's Trian Partners, which revealed in June that it had become one of the plumbing merchant's biggest shareholders with a nearly 6% stake. Trian said at the time that Ferguson was "an attractive business that trades at a discount to comparable U.S. peers." According to a top-20 investor, Ferguson has asked for shareholders' opinions on the move, noting, "We have had discussions about [moving the listing] in a preliminary way." The shareholder said he supported the move, as the United States already makes up about 90% of the company's profits. He added, "We think all the empirical evidence shows that a move to the U.S. will give the company a better valuation." However, many U.K.-based fund managers likely would oppose the move, as investment mandates often prevent them from holding overseas-listed stocks. This creates doubts about whether Ferguson could obtain the required 75% shareholder approval. Further, the move would increase concerns across the City of London about the future of the U.K. stock market following numerous takeovers and delistings.

Read the article

8/20/2019

Bramson Still Pushing for Barclays Overhaul

Reuters (08/20/19) Withers, Iain

A new report from Sherborne Investors (SIGC) shows that investor Edward Bramson is still pushing for an overhaul at British lender Barclays (BARC) after failing to obtain a seat on its board. Bramson lost his bid for a seat after shareholders voted against his attempt to downsize Barclays' investment bank from within. In its half-year report published on Tuesday, Sherborne Investors C said it advised the Barclays board that following its strategy could boost the bank's "long-term competitive position" and increase shareholder value. The report detailed slim profits for Sherborne and said the firm owned 5.48% of Barclays as of May 10. Sherborne has seen big losses since first disclosing its position in Barclays last year. The bank's share price declined by 219 million pounds in 2018, and is down 6.6% year-to-date. Barclays' investment bank has outperformed its European peers in recent quarters, although the unit still makes lower returns than its consumer and credit card businesses.

Read the article

8/20/2019

Knight Vinke Urges Alpiq Board to Call off Delisting, Squeezeout

Reuters (08/20/19) Hummel, Tassilo; Miller, John

In a letter published on Tuesday, investor Knight Vinke said it wants Alpiq (ALPH) to stop delisting and squeezing out its minority shareholders following a takeover by a pension-backed Swiss investment fund. In May, the Credit Suisse-managed CSA Energy Infrastructure Switzerland fund announced a takeover bid for Alpiq. While Knight Vinke does not oppose CSA's public tender offer (PTO), it said it does oppose "being deprived of the opportunity to continue participating as long-term investors in the upside that we see in Alpiq's unique portfolio" of Swiss hydro assets. Knight Vinke also said that like "many other investors," it believes "the PTO massively undervalues the Company" and it may therefore choose not to tender its shares.

Read the article

8/20/2019

Japanese Investor Ichigo Latest to Disclose Stake in Unizo

Reuters (08/20/19) Fujita, Junko; Dolan, David

On Aug. 20, Japan's Ichigo Asset Management reported a 5.56% stake in Unizo Holdings Co. Ltd., just days after SoftBank Group's (SFTBY) Fortress Investment Group made a $1.3 billion "white knight" offer for the hotel chain. Unizo's shares closed at 4,300 yen, with investors seeming to bet that Fortress will need to sweeten its offer of 4,000 yen a share. According to a regulatory filing, Ichigo acquired the stake to protect minority shareholders, and it indicated that it might make significant proposals to the company. Meanwhile, Elliott holds a 9.9% stake in Unizo.

Read the article

8/20/2019

California Pension Fund Wants to Join Facebook Lawsuit

Associated Press (08/20/19)

On Aug. 20, the California State Teachers' Retirement system said it will ask a judge to add it to a pending lawsuit against Facebook's (FB) leadership. The Fireman's Retirement System of St. Louis and retail investor Karen Sbriglio filed the lawsuit in August 2018 after it emerged that the Cambridge Analytica political consulting firm had taken people's personal information without their knowledge from Facebook and used it for political purposes. The pensions system's manager of sustainable investment and stewardship strategies said the fund believes weak corporate governance practices contributed to the scandal, damaging Facebook's share price.

Read the article

8/19/2019

Shareholders Less Critical of CEO Pay at FTSE 100 Firms - Survey

Pensions & Investments (08/19/19) Pielichata, Paulina

According to Deloitte's annual U.K. CEO remuneration report published Monday, the number of FTSE 100 companies in which shareholders disapprove of CEO pay fell by half to 7% in 2018. Total remuneration for FTSE 100 CEOs fell by 15%, and almost a third of FTSE 100 top executives received median salary increases of about 2% in 2018, with bonus payouts similar to the year before. Fewer companies are offering incentive plans, as 85% of FTSE 100 share programs stipulate that executives will not receive shares until they have been away from the company for at least five years, up from the 45% of programs who required this five years ago. Meanwhile, 16% of FTSE 250 companies criticized annual remuneration of CEOs. Deloitte analysts said they are "seeing continued evidence that investors expect the same standard of disclosure and engagement on pay across the U.K. market," with declining levels of shareholder support in the FTSE 250 and a growing desire for improved transparency around bonus plans overall.

Read the article

8/19/2019

Shareholder Adviser Supports Taking Merlin Private

Investors Chronicle (08/19/19) Janiaud, Alex

Merlin Entertainment's (MERLY) shareholders should support a consortium's 6 billion pound bid to take the company private, according to Pensions & Investment Research Consultants, a shareholder advisory service. In June, Merlin recommended that shareholders back the offer of 455p per share from Blackstone (BX), a Canadian pension fund and the Kirkbi family, which owns the Lego brand. The agreement came after ValueAct, the second-largest shareholder in Merlin with a 9.3% stake, issued an open letter in May that called on the company to "evaluate a public to private transaction." The day before ValueAct published the letter on May 22, the offer represented a 36.8% premium to the shares' closing price of 333p. Merlin Chairman John Sunderland said ValueAct's letter did not influence the deal, according to a Financial Times report. Shareholders are set to vote on the deal at Merlin's general meeting on Sept. 3, and the bid must win 75% of the vote to pass.

Read the article

8/19/2019

Hudson's Bay Soars After Catalyst Buys Stake to Block Chairman

Bloomberg (08/19/19) Deveau, Scott

Catalyst Capital Group Inc. has acquired a 10% stake in Hudson's Bay Co. (HBAYF) as part of its efforts to block a proposed takeover by Chairman Richard Baker and his partners. The Toronto-based private equity firm said it had received and accepted about 18.5 million shares in Hudson's Bay for about C$187 million ($141 million) in cash at C$10.11 per share—a premium to the C$9.45 a share offer from the group led by Baker, which collectively owns about 58% of the company. The announcement pushed up the stock 9% in Toronto, marking its biggest gain in more than two months. The move adds to pressure on Baker to raise his bid, which also is opposed by investor Jonathan Litt. "We look forward to working with HBC, the special committee of the board, and the company's stakeholders to ensure that this iconic company and its substantial assets are positioned to unlock value and that any transaction or strategic alternative maximizes value for the benefit of all shareholders," said Catalyst managing director and partner Gabriel de Alba. Baker's push to take the company private by purchasing the remaining shares his group did not already own would require the support of the majority of the remaining minority shareholders, making Catalyst's move crucial. Catalyst and Litt were among the investors who purchased shares sold by Ontario Teachers' Pension Plan in June, though their stakes remain unknown.

Read the article

8/19/2019

Investor Almost Triples Stake in GAM After Meeting CFO

Financial News (08/19/19) Ricketts, David

Krupa Global Investments boosted its 1% position in GAM (GMHLF) after an "effective meeting" with CFO Richard McNamara. The investor had sent a letter to GAM's management arguing that former executive Tim Haywood should pay compensation for the reputational damage caused by his high-profile dismissal from the Swiss asset manager. "Management clearly explained to us the successful sale of ARBF funds with premium given to clients, which we see as [a] positive step towards greater value for shareholders," said Pavol Krupa, chair of Krupa Global Investments, which now holds almost 3% of GAM. He added that GAM's management said the Haywood crisis was a "one-time mistake," and that "bringing new CEO Peter Sanderson to the GAM will solve reputation damage and will increase image and credibility of GAM funds, which we welcome." Further, Krupa said, "In my opinion, GAM shares are undervalued with significant takeover potential as we will see significant market consolidation in [the] asset management space in coming years."

Read the article