Media Center

Featuring all breaking news and in depth articles and editorial press coverage pertaining to shareholder activism and corporate governance.

Kaos Capital Demands Board Overhaul at Capricor Ahead of FDA Decision on DMD Therapy
Tata Motors-Iveco Heads Towards a Crucial Deadline
Ex-Murakami Fund Affiliate Takes 5.06% Stake in Japan's TV Asahi Holdings, Proposes Dividend Hike and Take-Private
Court Backs Korea Zinc Board in Buyback Suit
Southwest Airlines Cuts 2026 Profit Forecast as Rising Fuel Costs Squeeze Earnings
Nidec Poses New-Old Test for Japanese Buyouts
Align Discloses 1.5% SK Stake, Flags Double Discount via SK Square
Anson Funds’ Sagar Gupta Launches Dedicated Fund
Mattel Adds Board Member As EdgePoint Investment Group Pressure Mounts
ValueAct Calls for EGM of Takara Holdings to Strengthen the Board and Hold Incumbent Outside Directors Accountable
Video: Starboard Value CEO Jeff Smith Lays Out Case for New Bets
Incoming Northern Star CEO Flags Possibility of Asset Sales
Starboard Engages Honeywell Spin-off Solstice After Failed Megadeal
UK's Bunzl Posts Higher Third-Quarter Revenue, Maintains Annual Forecast
Video: CNBC’s Full Interview with Starboard Value CEO Jeff Smith
Video: Starboard Value CEO on Solstice
U.S. Investor Ananym Builds Stake in Europe's Top Ticket Seller CTS Eventim, Urges Changes
Video: CNBC’s Full Interview with Impactive Capital’s Lauren Taylor Wolfe
Disney’s Former CEO Is Getting $100,000 a Month as Oasis Management’s Nominee for Vail Board
Video: Impactive Capital’s Lauren Taylor Wolfe says It’s Very Hard to Understand When a Bubble Might Pop
Jana Takes Stake in Casella Waste, Urges Changes
Legendary Entertainment Makes a Play for Lionsgate
Sachem Head Sees Room for Ionic Shares to Surge
Financial Firm Supports Investor Group in Ethan Allen Proxy Fight
Vail Says Park City Billionaire Is Influencing Oasis Board Bid
Starboard Sees Value in Apple Chip Supplier Skyworks
Oasis May Seek Extraordinary General Meeting to Revamp Nidec Board
Whitbread Board Opposes Corvex Director Appointment Proposal
Starboard Value Prepares Nominate Directors at Knife River, Sources Say
Flashlight Capital Partners and Turton Capital Urge South Korea's Orion to Abandon JoongAng Ilbo Acquisition, Citing Approximately $451 Million Burden
Shareholder Activism in Asia Drives Global Total to Record High
Dealmakers See More Retail Mergers and IPOs in 2026 After Tariffs Sidelined M&A Last Year
Commentary: Proxy Fight for Control of Vail Resorts Board Boils Down to Institutional Investors
Here Are Five Possible Devon Energy Suitors as Investors Spark M&A Chatter
The $38 Billion Battle for Australia’s Top Gold Miner May Be Just Beginning
Commentary: It’s Too Late for Small Fixes at Pepsi
Japan’s Top Investor Has Plans for Its Scandal-Hit Corporates
Hedge Funds Bet Japan Reforms Have Further to Run at Sohn Tokyo
Shareholder Activism During Q3 Slows as M&A Demands Increase, Says Barclays
Gold Fields Executives Head to Perth as Northern Star Prepares Defensive Mine Sales
PepsiCo Running Out of Time to Meet Elliott-inspired Targets as GLP-1 Threat Intensifies
Late Filings by Situational Awareness Expose Gap in Japan Disclosure Rules
Commentary: CVC's Cheeky Italian Drug Buyout Will Likely Work
Why Washington’s Proxy-Adviser Crackdown Could Reshape Corporate Governance
Shareholders Push Companies to Help Retain Proxy Proposal Rights
U.S. Companies Adapt to Stewardship’s ‘New Normal’ After SEC Changes
Judicial, Media Support for South Korea Corporate-Governance Reforms Lacking: Flashlight Capital CEO
Nidec’s Unending Turmoil Raises Specter of Breakup or Takeover
A $120 Billion Gold Drama Hits Denver, and Elliott has a Starring Role
U.S. Shareholder Climate Shifts, Diversity Dips
‘A Lot of Value to Be Created’: Elliott Investment on Northern Star
Motorola Solutions CEO Greg Brown Offers Rare Insight Into Two Decades of Transformation on the CEO Signal
Charles River Laboratories Targets $300 Million in Savings Through AI Tools, Automation
Tata Dispute Sends India Inc Scrambling to Shore Up Shareholder Rights
Editorial: The SEC’s Big and Welcome Proxy Reform
Activism Update: Fewer Proxy Contests, More AI-Focused Themes
Hoban's Insatiable Appetite: Group Founder Targets Korean Air
Ex-Unilever Boss Takes Swipe at Activist Investors
South African Boards Court Investors as Pay Votes Become Binding
How the Passive Boom Gave ASX Loudmouths a Megaphone

8/21/2036

Kaos Capital Demands Board Overhaul at Capricor Ahead of FDA Decision on DMD Therapy

BigGo Finance (08/21/36)

Capricor Therapeutics Inc. (CAPR) is facing an activist campaign from shareholder Kaos Capital, which is demanding immediate board changes, a cash-preservation plan, and the creation of an M&A committee just one day before the U.S. Food and Drug Administration (FDA) is scheduled to act on the company's experimental Duchenne muscular dystrophy therapy. Kaos Capital, a Miami-based investment firm that describes itself as a "significant and growing shareholder," issued a letter to fellow shareholders on August 21 calling for a meeting with the board within 15 business days. The firm said it intends to nominate two independent directors and push for a board-led M&A and Strategic Alternatives Committee chaired by a shareholder-backed director. The activist campaign lands at a precarious moment for Capricor. The FDA's action date on deramiocel, the company's cell therapy for DMD-related cardiomyopathy, is August 22. In June, an FDA advisory panel voted 9-3 against the drug's use for that indication, casting significant doubt over its approval prospects. Capricor shares were down approximately 2% at the time of the letter's release. In the letter signed by CEO Adam Arviv, Kaos argued that Capricor has become overly dependent on a single regulatory outcome and must take immediate steps to preserve capital while exploring acquisitions, licensing deals, and partnerships that could broaden its pipeline. The company reported $237.9 million in cash, cash equivalents, and marketable securities as of June 30, down roughly $80.2 million from year-end 2025. First-half 2026 operating expenses totaled $79.7 million, including $23.5 million in general and administrative costs — approximately double the comparable 2025 figure, according to the letter. Kaos called for a formal Cash Preservation Plan that would include: a near-term freeze on nonessential spending; a zero-based review of G&A expenses; enhanced approval requirements for material commitments; and quarterly reporting on cost reductions, cash runway, and capital use. The firm also urged the board to retain independent legal advisers and commission a review of oversight, disclosure controls, contracting, compensation, and capital-allocation processes. Kaos cited "numerous legal matters and shareholder demands" disclosed in Capricor's public filings, including securities and derivative actions, a Section 220 books-and-records demand, a patent action, a distribution dispute, and employment-related claims. A further securities class action was filed against the company and certain officers in 2026. "This legal overhang carries cost, distraction, reputational risk, and governance consequences," the letter stated. Kaos emphasized it is not asking Capricor to abandon deramiocel, which it believes "may still have meaningful value for patients." Instead, the firm wants the company to use its cash and public-company platform to build a broader, multi-modality biotechnology enterprise. The proposed M&A committee should evaluate assets in inflammation, fibrosis, tissue repair, targeted delivery, and regenerative medicine, the letter said. Kaos specifically pointed to advanced small-molecule pharmacology targeting the NLRP3/inflammasome signaling pathway as one area of interest. "Conviction in a lead program is not a license for a Board to concentrate all of a public company's capital, risk, and future in a single regulatory outcome," Arviv wrote. The activist push comes as Capricor awaits the FDA's decision on deramiocel. The agency's action date is August 22, though the timeline has grown complicated. After the advisory committee's negative vote in June, Capricor said the FDA was willing to review an amendment containing 24-month Hope-3 data focused on upper-limb function. A new target date has not been formally announced. Roth Capital expects the FDA review could be extended by approximately three months to accommodate the additional data. Kaos said it is prepared to work constructively with the board but warned of escalation if its demands are not met. If the board does not confirm and convene the requested meeting within the specified timeframe, Kaos said it will begin seeking shareholder support to elect its two independent nominees, replace directors, and potentially pursue removal of senior management. "We do not take that step lightly, but continued inaction would leave shareholders no reasonable alternative," the letter read.

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10/23/2026

Tata Motors-Iveco Heads Towards a Crucial Deadline

The Week (India) (10/23/26) Thomas, Prince

Tata Motors (TMCV.NS) faces an October 26 deadline to secure sufficient shareholder support for its €3.8 billion takeover of Italian truckmaker Iveco (IVG.MI), its largest acquisition to date. Three institutional investors, hedge funds Davidson Kempner and Syquant Capital, and Petrus Advisers, remain dissatisfied with the offer, arguing that the original €14.10-per-share price undervalued Iveco and that Tata Motors has not adequately explained the deal’s long-term synergies. Tata raised its offer to €14.40, but Petrus values Iveco at approximately €18 per share. The three investors collectively hold 20.4% of Iveco, making their participation critical. Tata needs at least 80% of shares tendered, a threshold reduced from 95% on October 16. Although the company has secured the necessary regulatory approvals, it previously missed its September deadline and now hopes to complete the transaction by year-end. The investors could reportedly gain €350 million from selling their holdings, including €288 million in extraordinary dividends. The acquisition would expand Tata Motors’ limited European commercial-vehicle presence, strengthen its global operations, and support its transition to cleaner transport technologies. However, raising the offer further could increase debt and concern Indian investors, who initially reacted negatively to the deal’s announcement in 2025.

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10/23/2026

Ex-Murakami Fund Affiliate Takes 5.06% Stake in Japan's TV Asahi Holdings, Proposes Dividend Hike and Take-Private

BigGo Finance (10/23/26)

City Index Eleventh, an investment firm affiliated with the former Murakami Fund, holds 5.06% of TV Asahi Holdings (TYO: 9409) shares, according to a Large Shareholding Report filed with the Kanto Local Finance Bureau on Oct. 22. The stake is held jointly with Aya Nomura, the eldest daughter of Yoshiaki Murakami and a co-holder, with the reporting obligation arising as of Oct. 15. The firm has already made concrete proposals to TV Asahi Holdings, including changes to its capital policy and a take-private of its shares. According to the report, most of the shares are held by Nomura, and the stated purpose of holding is "advice and proposals on capital policy and other matters contributing to the enhancement of shareholder value." The proposals include expanding shareholder return measures such as a dividend increase and share buybacks, as well as the sale of businesses and assets, including subsidiaries, and a take-private of the shares through an MBO (management buyout). City Index Eleventh said it may acquire more than an additional 5% of the shares within three months if it judges the stock to be undervalued. In the notice of its ordinary general meeting of shareholders published by TV Asahi Holdings in June this year, Nomura's ownership ratio was 1.86%, making her the eighth-largest shareholder. The composition of major shareholders is as follows: The Asahi Shimbun Company 20.21%; T?ei 17.70%; Aya Nomura (as of June) 1.86%; Aya Nomura and others (newly disclosed) 5.06%. Regarding TV Asahi Holdings shares, the investment firm affiliated with the former Murakami Fund is believed to have been gradually increasing its purchases since last year, and crossing the 5% threshold this time triggered the obligation to file a Large Shareholding Report. The company has not disclosed proposals from shareholders seeking improved capital efficiency, and its future response is drawing attention. Among market participants, there is a view that TV Asahi Holdings' share price has been left undervalued relative to its net asset value, and it has been pointed out that pressure from the investor could prompt management to review its capital policy. Because the broadcasting industry is a regulated sector, a take-private or asset sale would come with high hurdles, including approval from Japan's Ministry of Internal Affairs and Communications. If the latest proposals are realized, they could affect not only TV Asahi Holdings' shareholder return policy and business portfolio but also serve as an opportunity for investor involvement to spread to other Japanese broadcaster stocks. Investors are watching closely for official comments from TV Asahi Holdings and the board's response to the proposals.

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10/22/2026

Southwest Airlines Cuts 2026 Profit Forecast as Rising Fuel Costs Squeeze Earnings

American Bazaar (10/22/26) Quasim, Rajwa

Southwest Airlines (NYSE: LUV) has lowered its annual profit forecast for 2026 as rising jet fuel prices threaten to offset gains from higher ticket prices and a major overhaul of its business, despite reporting record revenue in the third quarter. The Dallas-based carrier now expects adjusted earnings of $2.60 to $2.85 per share for the year, down from its previous forecast of $3.25 to $4.25 per share. The midpoint of the revised range is below analysts’ average estimate of $2.85 per share. Southwest shares rose 1% in extended trading. Although the airline’s revenue has improved, the gains have been accompanied by a sharp increase in operating costs. Southwest reported third-quarter revenue of $8.4 billion, its highest quarterly total on record. The airline’s average passenger fare reached $231.69 in the quarter, an increase of nearly 27% from the same period a year earlier. The company's adjusted earnings reached 66 cents per share, beating analysts' forecast of 58 cents and rising from 11 cents a year earlier. Meanwhile, Southwest's fuel bill rose by $821 million year over year. The airline expects jet fuel prices to climb further in the final three months of the year, averaging $4.55 per gallon. “With the transformation complete, our efforts have shifted to optimizing the business,” CEO Bob Jordan said in a statement. Southwest has been changing its traditional business model to encourage passengers to pay more for travel. In September, Southwest Airlines Co. announced the debut of its lounge service at four U.S. airports, partnering with Chase and drawing on the experience of Chase's Sapphire Reserve Lounge network. The airline has faced several challenges and significant changes over the past few years. In 2024, Elliott Investment Management acquired a $1.9 billion stake in Southwest, seeking to improve its market performance through leadership changes. That same year, Southwest ended its 50-year tradition of open-seat boarding, a practice that had become part of its brand identity. In 2025, the airline ended its free checked-baggage policy, which it had offered for about 60 years and promoted through the slogan “Bags Fly Free.” Southwest now charges passengers to check their first and second bags. “Demand remained strong as we lapped last year's bag fee and other commercial initiatives, reinforcing our belief that the earnings power we've built is durable, even with significantly higher fuel costs,” Jordan added. Southwest reported net income of $270 million for the third quarter, up from $54 million in the same period a year earlier. The airline plans to increase flight capacity by 3% to 4% in the fourth quarter. Rising fuel costs have been driven in part by geopolitical tensions linked to the U.S.-Iran war in the Middle East, adding uncertainty to the aviation industry. Other major U.S. airlines, including Delta Air Lines (NYSE: DAL), have indicated that carriers may need to limit flight growth next year to sustain higher fares.

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10/22/2026

Nidec Poses New-Old Test for Japanese Buyouts

Reuters Breakingviews (10/22/26) Lockett, Hudson

Nidec (TYO: 6594), Japan’s $16 billion precision-motor maker, is facing a major accounting crisis that could lead to its delisting from the Tokyo Stock Exchange, potentially creating an opportunity for private-equity investors. New CEO Michio Kaida said the company is still seeking auditor PwC’s approval for delayed financial results after recognizing about ¥1.1 trillion ($7 billion) in write-downs, including roughly ¥480 billion linked to accounting irregularities. Nidec must resolve its financial reporting issues by October 28 to avoid a forced delisting, while its shares have fallen sharply. The crisis is reminiscent of Toshiba, which following a 2015 accounting scandal became a high-profile option for hedge funds and investors including Elliott Management and Third Point. Nidec has also attracted investor interest, with Oasis Management building an almost 8% stake. Buyout firms such as Bain and KKR (NYSE: KKR) have the financial resources and restructuring expertise to pursue a takeover, but several obstacles could complicate a deal. Japanese authorities may consider some of Nidec’s more than 350 subsidiaries strategically important, while foreign investors could face resistance because of the company’s importance to Japan’s export economy. The experience of Toshiba, which ultimately went to a domestic consortium after foreign bidders faced concerns about strategic ownership, illustrates the potential difficulties. A successful Nidec transaction could therefore become an important test of Japan’s evolving corporate-governance and M&A environment.

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10/21/2026

Anson Funds’ Sagar Gupta Launches Dedicated Fund

Bloomberg (10/21/26) Sun, Mengqi

Anson Funds portfolio manager Sagar Gupta is preparing to launch a fund called Anson Vira in early 2027 aimed at small and mid-cap companies. The new fund will be seeded by Anson, which will commit $200 million to the strategy, and the fund has started to attract outside capital as well. Anson Vira will focus on investing in small and mid-cap technology, media and telecom companies valued at $1 billion to $10 billion in North America. It will have five to eight positions at a time and emphasize AI adoption at portfolio companies to boost returns. “Small caps are super cheap relative to large caps and the problem is you cannot just get into a small-cap stock and expect the market to wake up and realize the value,” Gupta said on Bloomberg TV. “You have to create it yourself, so this is why I think activism is very much needed in the small-cap space, because the returns have not been there.” Gupta, 38, with almost a decade of investing experience, has led the investing strategy at Anson since 2023, investing out of the flagship fund. Earlier in his career, the Los Angeles-based investor worked at Legion Partners for nearly six years, according to his LinkedIn profile. The new fund will also push portfolio companies to use artificial intelligence, which, according to Gupta, some chief executives have been too slow to implement widely enough. “There is a huge opportunity to drive value creation by pushing our companies to adopt AI, to grow faster and be more efficient, and be able to structurally rerate these stocks” in public markets, he said. Campaigns led by Gupta have included Twilio Inc. (NYSE: TWLO), Clear Channel Outdoor Holdings Inc. (NYSE: CCO), Globalstar Inc. (NASDAQ: GSAT), Lionsgate Studios Corp. (NYSE: LION), Match Group Inc. (NASDAQ: MTCH), and SPS Commerce Inc. (NASDAQ: SPSC). Clear Channel Outdoor and Globalstar both ended up selling themselves. Gupta also sits on the board of Five9 Inc. (NASDAQ: FIVN) after reaching a settlement with the company in 2024. Anson's activism strategy has produced 30% plus annualized returns since launching in 2023 and has gained more than 30% so far this year, people familiar with the matter said. It's been a while since a new fund focused on activism has been launched. Former Jana Partners executive Charlie Penner and Alex Silver, a former partner at P2 Capital Partners, founded Ananym Capital Management in 2024. The fund on Tuesday said it has taken a position in the European ticketing platform CTS Eventim AG (EVD.DE), betting that more people will go offline and head to live events, Bloomberg News reported. Elliott Investment Management veteran Adam Katz in 2021 founded Irenic Capital Management with Andy Dodge from Indaba Capital Management. That fund has launched a few high-profile campaigns since its start, including a recent one at UK self-storage firm Big Yellow Group Plc (LON: BYG) and at social media company Snap Inc. (NYSE: SNAP). Former Elliott executive James Smith in 2021 launched Palliser Capital in London. Smith said last week Samsung Electronics Co. (KRX: 005930) should list shares in the United States and use the proceeds to buy back preferred stock, saying the company should do more to narrow the discount on those securities, which carry no voting rights.

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10/21/2026

Mattel Adds Board Member As EdgePoint Investment Group Pressure Mounts

Wall Street Journal (10/21/26) Hamilton, Katherine

Mattel (NASDAQ: MAT) has entered into a cooperation agreement with EdgePoint Investment Group, appointing partner Lee Matheson to its board of directors as the toy maker faces mounting pressure from investors to improve its performance and consider a sale. EdgePoint owns approximately 18% of Mattel’s shares, making it one of the company’s largest and longest-standing shareholders. The agreement includes customary voting, standstill, and confidentiality provisions. The board appointment comes amid growing investor dissatisfaction with Mattel’s declining stock price and calls for strategic alternatives. Earlier this month, Ariel Investments, which holds a 5.4% stake, urged Mattel to consider a divestiture, merger, or outright sale, arguing that its shares were undervalued. In May, Southeastern Asset Management also advocated selling the company, suggesting private equity ownership, a competitor, or a large media company could be potential buyers. Separately, Authentic Brands has expressed takeover interest in Mattel, with discussions reportedly involving a transaction valued at more than $20 per share, according to The Wall Street Journal. The developments follow Mattel’s surprise leadership transition in late September, when the company appointed Condé Nast Chief Executive Roger Lynch as its next CEO. Lynch has said he intends to pursue new strategies to strengthen Mattel’s brands. The addition of Matheson places a major shareholder representative on the board as Mattel navigates activist demands, potential takeover interest, and pressure to improve shareholder value.

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10/21/2026

ValueAct Calls for EGM of Takara Holdings to Strengthen the Board and Hold Incumbent Outside Directors Accountable

BusinessWire (10/21/26)

ValueAct Capital, which owns approximately 20.0% of Takara Holdings' (TYO: 2531) outstanding shares, has formally requested an extraordinary general meeting of shareholders to address the company’s prolonged underperformance and strengthen board oversight. The investment firm seeks to remove three incumbent outside directors and elect three independent candidates with relevant management, governance, and financial expertise. ValueAct argues that Takara Holdings has significant untapped growth potential but suffers from an unfocused strategy, weak execution, and inadequate board supervision. The company’s previous medium-term management plan, which ended in March 2026, missed every financial target. Its return on equity fell to 4.6% in the last fiscal year, with management forecasting less than 5.0% for the current year. Meanwhile, Takara Bio (TYO: 4974) and its Japanese food wholesale business have experienced declining profitability, and the company’s shares have underperformed the broader market and industry peers. ValueAct criticizes the board for approving a tender offer for struggling subsidiary Takara Bio without sufficiently independent financial oversight, despite forecasts suggesting the transaction would not earn its cost of capital. It also opposes the company’s 2030 management plan for maintaining the existing business portfolio and strategy, which ValueAct believes fails to address structural weaknesses or prioritize key profit drivers. After more than six years of engagement, ValueAct says the board rejected requests for an independent strategic review and substantive discussions about governance reform. The proposed changes would remove Masako Tomotsune, Tomoko Kawakami, and Takao Motomiya, replacing them with Eric Johnson, Yuko Tashiro, and Marc André Tousignant. ValueAct emphasizes that it does not seek control or a predetermined business outcome, but rather a board capable of independently evaluating strategy, leadership, and capital allocation to improve long-term shareholder value.

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10/21/2026

Incoming Northern Star CEO Flags Possibility of Asset Sales

Kitco (10/21/26) Sunny, Sherin; Tanishk, Kumar

Australia’s Northern Star Resources (ASX: NST) on Wednesday flagged the potential for asset sales as the miner focuses on delivering its turnaround plan under a new CEO, amid pressure from both Elliott and suitor Gold Fields. Northern Star reported a 7.2% rise in first-quarter revenue from gold sales, helped by higher average gold sale prices that offset lower volumes from planned shutdowns, but missed market expectations. It, however, kept its full-year guidance intact. The result was the first time CEO Suresh Vadnagra faced investors since he took the helm of Australia’s biggest gold miner on October 5. Vadnagra said his first focus was to deliver against company projections as processing at its Kalgoorlie operations ramps up, and flagged that he would assess the company’s assets for value including for potential sales. The focus on delivery comes after Elliott in June called for a review and new leadership, citing repeated “operational missteps,” including seven outlook misses in four years, and a share price that vastly underperformed its peers. Asked by an analyst on a results call about whether management saw potential value from asset divestment, Vadnagra said: “It's clear that there's an active process by the site team and the planning team to look at each (of our) assets and assess … the way we're operating those assets, and is there a way for us to unlock further value or improve the resilience?” “Obviously, I'd like to apply my own lens to it as well with time, and it's an area that's high on the agenda.” He declined to comment on the A$38.7 billion ($27.16 billion) takeover offer by South Africa's Gold Fields (NYSE: GFI) that the miner rejected. Northern Star's management has previously said that the offer was opportunistic. Gold Fields' CEO last week played down market speculation that it would raise its offer for Northern Star. Four Western Australian assets identified by Barrenjoey for potential sale include Jundee, Thunderbox, Carosue Dam, and some of its Kalgoorlie operations. Bullion traded higher during the September quarter, as central bank buying and geopolitical uncertainty helped the gold miner report a higher average realized gold price of A$4,999 per ounce, compared with A$4,452 a year earlier. This made up for the lower volumes due to planned major shutdowns that hit its three production centers. The miner said quarterly gold sold totaled 364 koz, compared with 381.1 koz from a year before. Revenue from gold sales came in at A$1.82 billion for the quarter ended September 30, compared with A$1.70 billion a year earlier. That missed the Visible Alpha consensus estimate of A$1.93 billion.

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10/20/2026

Starboard Engages Honeywell Spin-off Solstice After Failed Megadeal

Financial Times (10/20/26) Barnes, Oliver; Pollard, Amelia

Starboard Value has acquired a stake in Solstice Advanced Materials (NASDAQ: SOLS), a specialty chemicals company spun off from Honeywell (NASDAQ: HON) nearly a year ago. Starboard’s founder and CEO Jeff Smith said on Tuesday that investors had “lost some confidence” that Solstice was “focusing on the core business to improve value for shareholders as opposed to trying to get bigger at all costs” after the failed merger. Smith’s remarks kicked off the 13D Monitor Active-Passive Investor Summit. Starboard owns several hundred million dollars’ worth of Solstice stock, according to people familiar with the matter, putting it among Solstice’s top 10 shareholders. Starboard wants Solstice to improve operational performance, focus on its core refrigerants and nuclear businesses, and reduce corporate overhead by approximately $100 million. The investment follows Solstice’s abandoned $14.5 billion acquisition of Element Solutions (NYSE: ESI), which sparked investor concerns about strategic fit, valuation and capital allocation. Solstice canceled the deal in August before a crucial shareholder vote. Its shares have since fallen 26% below their pre-announcement level, despite initially nearly doubling after the spin-off. Starboard sees significant growth potential in Solstice’s nuclear division, which supplies a key chemical used in uranium enrichment. The business could benefit from rising electricity demand driven by artificial intelligence and the U.S. government’s planned 2028 deadline to end imports of Russian enriched uranium. Solstice is among the few companies outside Russia and China capable of performing the initial uranium-enrichment step. Starboard’s investment adds pressure on Chief Executive David Sewell to restore shareholder confidence and strengthen the company’s performance following a turbulent first year as an independent business.

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10/20/2026

U.S. Investor Ananym Builds Stake in Europe's Top Ticket Seller CTS Eventim, Urges Changes

Reuters (10/20/26) Steitz, Christoph; Herbst-Bayliss, Svea

Ananym Capital said on Tuesday it has taken a stake in Germany's CTS Eventim (EVDG.DE), adding the firm, which sells tickets for events by global artists such as Taylor Swift, Ed Sheeran and Iron Maiden, was significantly undervalued. With a current market value of nearly €6 billion ($6.73 billion) ($6.6 billion), CTS Eventim is Europe's top ticket seller and also organizes major festivals such as Rock am Ring and Rock im Park. "It's an investment we might like for a long time," Ananym co-founder Charlie Penner said at the 13D Monitor Active Passive-Investment Summit in New York. "There is actually money to be made by giving people a break. In this case getting some actual human contact," Penner, who jointly runs Ananym with co-founder Alex Silver, added. The German company's shares have fallen nearly 50% since reaching a record high in May last year, pummeled by weak results, disappointing 2026 guidance and the recent departure of its finance chief, which marked the third CFO departure at the group since 2020. Ananym, which has a reputation for working collaboratively with its target companies, argues that CTS Eventim is resilient to artificial intelligence but should use it to help enhance its customer experience and ultimately boost its share price. Providing investors with more transparency about its business model, establishing a stable management structure as well as a share buyback could unlock upside potential of 50% to 100%, Penner said at the conference. CTS Eventim, whose founder and long-time CEO Klaus-Peter Schulenberg is also the group's top shareholder, trades at a 44% discount to U.S. peer Live Nation (LYV.N) based on the ratio of core profit to enterprise value, according to LSEG data. The group, which is scheduled to hold its first ever capital markets day next month, expects sales and operating profit to remain stable or slightly improve in 2026 compared to last year. Last year, the group's operating margin stood at 15.5%, while revenue grew to €3.08 billion. Ananym feels management has a chance to eliminate market misconceptions and spread the word about the German company to more international investors at the capital markets day, which comes at a time private equity firms are eager to buy live entertainment assets. Most pressing, however, may be a push to buy back more shares, which would signal more confidence in the company's future, Penner said. At the moment several investors have said that buying back shares would be the highest return use of capital, suggesting more investors may be ready to push for them at a time many targets' stock prices are under pressure. The investment marks Ananym's second in Germany within a year after disclosing a stake in German power equipment firm Siemens Energy (ENR1n.DE), arguing in favor of a spinoff of the group's wind turbine division Siemens Gamesa to raise value. Penner and Silver founded Ananym two years ago. At last year's 13D conference, Penner urged energy and technology company Baker Hughes (NASDAQ: BKR) to spin off its oil field services and equipment business, arguing such a step could help push up the stock price by at least 60%.

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10/20/2026

Disney’s Former CEO Is Getting $100,000 a Month as Oasis Management’s Nominee for Vail Board

Wall Street Journal (10/20/26) Pohle, Allison

Former Disney (NYSE: DIS) CEO Bob Chapek is getting paid $100,000 a month as a nominee for the board of Vail Resorts (NYSE: MTN). The payment comes from Oasis Management, an investor engaging Vail, which put Chapek forward as one of four nominees to the board of the ski behemoth. The Hong Kong-based investor disclosed a 9.6% stake in the company last week and is ramping up pressure on Vail to change. Oasis also agreed to give Chapek a forgivable $500,000 loan to purchase Vail stock if he is elected to the company’s board. Board seats are the main focus of Oasis’s campaign thus far. Oasis says that Vail’s current board has failed to hold the company accountable for the erosion of its valuation. Vail Resorts stock has dropped by more than 50% over a five-year period. “We believe that Vail Resorts could be worth significantly more than its current stock price, that the status quo is untenable and that change is urgently needed to address the Company’s longstanding deficiencies and restore growth, profitability and credibility,” Oasis said in a securities filing last week. It didn’t have a comment. Vail had no comment beyond its proxy filing. It has said it is encouraged by early progress from its increased focus on skier engagement and loyalty, and is also making improvements to on-mountain dining, ski lessons and rentals. In July, it added MGM Resorts International (NYSE: MGM) Chief Executive Bill Hornbuckle to the board to draw from his hospitality experience. Chapek, who declined to comment, spent nearly 30 years at Disney, including 33 months as chief executive before he was ousted and his predecessor Bob Iger succeeded him. Oasis first floated Chapek as a board candidate in July 2025, noting his experience in the hospitality industry, according to a Monday securities filing from Vail. At a dinner this August, Oasis’s founder, Seth Fischer, brought up Chapek to Vail CEO Rob Katz. Unbeknown to Vail at that point, the company said in its filing, Chapek was already on Oasis’s payroll. On July 28, Chapek entered the consulting agreement for services related to actions the board should take related to corporate governance, operations and strategy. This arrangement is slated to last through Vail’s annual meeting, which still hasn’t been announced. Later in August, Katz set up a time to meet with Chapek virtually. In the call, the former Disney chief executive highlighted his experience that was relevant to Vail’s business and guest experience strategy, Vail’s filing says. He also flagged that his book “Behind the Castle Walls” might be controversial. In the book, he writes about getting ousted as chief executive and accuses Iger of undermining him. Chapek also told Katz he didn’t want to be involved in an investor fight, according to Vail’s filing. When Katz emailed Fischer about the meeting, Katz said: “Went well. He is a thoughtful guy,” according to Oasis’s filing. But Vail says that Chapek didn’t disclose the paid consulting arrangement he has with Oasis, or the $500,000 forgivable loan. The other Oasis board nominees each received two, one-time fees of $50,000, so long as they invested the posttax proceeds in stock, the filings show. It isn’t unheard of for investors to compensate board candidates, though the arrangements vary widely. Vail has recommended that its shareholders reject all of the Oasis candidates. Specifically related to Chapek, the company said its board had concerns that Chapek didn’t disclose his financial agreement with Oasis, which the filings says runs counter to his statement that he didn’t want to be involved in an investor fight. Signs are pointing to another challenging winter ahead for Vail. The company has relied on a model of selling all-access passes ahead of the ski season to help it endure tough seasons. But last winter, with record-low snowfall in the Rockies, proved especially difficult. Vail told investors it sold 12% fewer passes through Sept. 18 for the coming North American ski season, compared with the same period last year. It has emphasized a focus on a better guest experience, including on-mountain dining, gear rentals and private lessons.

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10/20/2026

Jana Takes Stake in Casella Waste, Urges Changes

Reuters (10/20/26) Herbst-Bayliss, Svea

ana Partners has taken a stake in Casella Waste Systems (NASDAQ: CWST) and is pressing the regional waste management company to improve profitability, operational efficiency, and returns on invested capital. Jana managing partner Scott Ostfeld said Casella’s shares have underperformed, falling approximately 11% this year and remaining broadly flat over five years, despite stronger performance among competitors. "Improving margins and ?operational execution can drive returns on capital, reignite its attractive growth flywheel and unlock Casella’s ?discounted valuation," Ostfeld said at the 13D Monitor Active-Passive ?Investor Summit in New York. The Vermont-based company, valued at roughly $5.6 billion, has struggled to expand margins and integrate its $525 million acquisition of Mid-Atlantic waste assets from GFL Environmental in 2023. Jana wants Casella to align executive compensation more closely with shareholder value and publicly commit to achieving a 27% EBITDA margin by 2029, compared with 22.7% in the quarter ended June 30, 2026. Ostfeld also recommended hiring a performance improvement consulting firm to strengthen execution and accelerate cost savings. He argued that Casella’s depressed valuation and strong northeastern US presence could make it an attractive acquisition target. Waste management has attracted significant interest from private equity firms, infrastructure investors, and industry leaders, including Blackstone, EQT, Ares, TPG, Waste Management, and GFL Environmental.

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10/20/2026

Financial Firm Supports Investor Group in Ethan Allen Proxy Fight

Woodworking Network (10/20/26) Adams, Larry

Independent proxy advisory firm Egan-Jones Proxy Services has recommended Ethan Allen (NYSE: ETD) shareholders vote for all five director nominees proposed by Doug Bergeron and withhold votes from all incumbent directors at the company’s annual meeting on Nov. 4, according to a press release statement. The slate of candidates for Ethan Allen's board is Douglas G. Bergeron, Anna Brockway, Kristine E. Miller, Steve Oblak, and Stefanie Tsen Ward. Ethan Allen Interiors Inc., which had annual sales of $359.1 million, ranks #39 in the FDMC 300 listing of top wood products manufacturers. In commenting on the strength of Bergeron's nominees and their plan to restore growth, Egan-Jones noted, “The DGB slate is highly qualified and was built to fill the exact gaps the incumbent Board lacks: modern retail, home furnishings, digital commerce, and brand revitalization. Two nominees helped build major home furnishings businesses, and the others have led turnarounds, luxury retail and digital strategy at scale.” Egan-Jones said that they made the decision based on declining revenue, with falling revenue driving declining earnings and shrinking the cash balance. The firm noted that management has described the same problems and fixes for over a decade, including reaching younger customers, modernizing the brand, and building a digital business, but results have not followed." “The four independent directors joined between 2015 and 2022, so the Board has changed in name. In substance it has not: each has overseen Ethan Allen trailing the small-cap market since joining, and together they have preserved the same leadership, strategy and pay framework.”

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10/20/2026

Vail Says Park City Billionaire Is Influencing Oasis Board Bid

KPCW (10/20/26) Weller, Kristine

Vail Resorts (NYSE: MTN) accused its stockholder, Oasis Management, of working with Park City billionaire and Cloudflare (NYSE: NET) CEO Matthew Prince in an Oct. 19 U.S. Security and Exchange Commission filing. Oasis is a Hong Kong-based hedge fund that now owns 9.6% of Vail common stock. In September, the investor launched a proxy fight against Vail. That’s when a shareholder tries to replace existing board members and influence a business’s strategy. Oasis filed a preliminary proxy statement Oct. 19, reiterating its belief a reconstituted board would make Vail more profitable. The fund recommended four people to Vail’s board, including Utah venture capitalist Bryce Roberts and two-time Olympian and Park City resident Picabo Street. Now, Vail says Prince introduced Street and Roberts to Oasis one week before their nominations, “raising questions regarding potential conflicts of interest.” The resort company said Prince may have recommended the two Utahns as they could help him buy Park City Mountain. As KPCW first reported, Prince said he wanted to buy the Vail-owned resort in 2025, then doubled down on that desire in August. In an email Tuesday, Prince told KPCW he sent around 12 names to Oasis, including Street and Roberts. He said, “any of them would have brought an improvement to Vail's current board,” but he “had no influence over who Oasis decided to move forward with.” “I thought Bryce would be great because of his deep understanding of technology and innovation. And Picabo for her recognition of the love and magic of skiing, both of which Vail has forgotten or lost,” Prince said. “I've not discussed my plans to acquire Park City Mountain with either Bryce or Picabo beyond at the most cursory level.” According to Vail, board interviews with Street and Roberts only added to concerns. The company said, “Neither candidate demonstrated basic knowledge about the Company's services, products, and strategic initiatives … causing the Board to question the level of rigor and commitment.” Vail said a competitor's president and chief operating officer also introduced Roberts to Oasis, raising further questions about conflicts of interest. The resort company had similar reservations regarding Oasis' other nominees: former Disney CEO Robert Chapek of Florida and Florida-based financier M. Ashton Hudson. While Vail acknowledged Chapek is the only Oasis nominee with relevant industry experience, the board was concerned about the circumstances of his termination from Disney in 2022. The board also said Hudson could not articulate how his entrepreneurial experience would support Vail. In a letter to shareholders, Vail CEO Robert Katz said the board does not endorse any Oasis board nominees or Gregory S. Meyer, who nominated himself. Katz said despite the challenging 2025-2026 winter, revenue declined just 3.5% for the year. He said new passes and pricing strategies across its 42 resorts have shown positive results: the company had record guest satisfaction scores last year and is outperforming its competitors. One member of Vail's 10-member board is not standing for reelection. Vail recommends capping the board at nine and is asking shareholders to re-elect all current members before the company's annual meeting. A meeting date has not been announced, but is usually in early December.

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10/19/2026

Starboard Sees Value in Apple Chip Supplier Skyworks

Bloomberg (10/19/26) Sun, Mengqi

Starboard Value sees significant upside in Skyworks Solutions (NASDAQ: SWKS) following its acquisition of rival wireless chipmaker Qorvo, believing the combined company remains undervalued. The merger, valued at approximately $22 billion, was completed this month after both companies faced slowing growth following Apple’s (NASDAQ: AAPL) shift toward developing its own components. Starboard views the companies’ complementary product portfolios as an opportunity to expand growth and improve profitability. Key targets include achieving at least $500 million in annual cost savings within three years and operating margins of 30% to 35% within two to three years. Starboard believes investors have yet to fully recognize these potential benefits. The investor previously held a stake in Qorvo and pushed for operational improvements, securing board representation without a proxy fight. Two executives it helped appoint to Qorvo’s board remain on Skyworks’ board following the merger. Skyworks manufactures wireless communication chips used in smartphones, data centers, and defense equipment. Its challenges include reduced demand from Apple-related business as the technology company increasingly adopts internally developed components. Starboard’s optimism reflects its broader investing strategy of identifying undervalued companies and pressing for operational improvements. Successful integration, cost reductions, and margin expansion could strengthen Skyworks’ competitive position and shareholder returns, although realizing these benefits will depend on execution.

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10/19/2026

Oasis May Seek Extraordinary General Meeting to Revamp Nidec Board

Nikkei Asia (10/19/26) Obe, Mitsuru

Oasis Management is considering calling an extraordinary shareholder meeting at troubled Japanese motor maker Nidec (TYO: 6594), as the Hong Kong investor seeks to revamp oversight at the company, which last month reported a historic loss for the last fiscal year amid a massive accounting scandal. The measures Oasis is pushing for include adding foreign members to the board and having a more proactive nomination committee that evaluates board performance and identifies candidates who can more effectively oversee management. "If they don't go ahead and take action quickly on that front, we're going to have to call an EGM (extraordinary general meeting)," said Seth Fischer, the founder and chief investment officer. He was speaking at the Sohn Investment Conference in Tokyo on Friday. Oasis owns 9% of Nidec's outstanding shares, making it the company's largest single shareholder. Nidec founder Shigenobu Nagamori, an 82-year-old known for berating his executives, owned 8.6% of the company outright and another 3.5% through a family-controlled entity as of March 31. Nagamori was pushed out of Kyoto-based Nidec in February amid an investigation by an independent committee into allegations that the company had engaged in improper accounting for years. Fischer on Friday said Oasis could increase its Nidec holdings "substantially ... depending on price and some other factors." Under Japanese law, a shareholder that has held at least 3% of voting rights for six months can request that a company convene an EGM. Oasis's stake in Nidec first came to light on March 11. In September, Nidec installed its fourth president in six years, seeking a fresh start after more than four years of turmoil marked by Nagamori's interventions in management as founder and largest shareholder. "Nidec is a microcosm of the things that can go wrong at companies when governance isn't working," Fischer said. "In this case, you had a founder who was the president, chairman and later honorary chairman. He was extraordinarily powerful and had no real governance oversight above him. There was nobody to hold him accountable." With its special designation over irregular accounting allegations reaching the one-year mark at the end of this month, Nidec faces a Tokyo Stock Exchange review. If the company fails to establish appropriate internal controls to the regulator's satisfaction, it could face delisting. On Oct. 7, Oasis urged Nidec to explore privatization options while it works on revamping its internal controls.

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10/19/2026

Whitbread Board Opposes Corvex Director Appointment Proposal

Investing.com (10/19/26)

Whitbread PLC (LON: WTB) published an investor presentation today opposing a resolution from to appoint a new director to its board, according to a press release statement. The company announced the presentation ahead of a general meeting scheduled for November 9, 2026, which was requisitioned by Corvex Management LP. The meeting will take place at Whitbread Court in Dunstable, Bedfordshire at 1pm. Whitbread’s board unanimously recommends shareholders vote against Corvex’s proposed resolution to appoint James Gemmel as a director. The board cited three reasons for its opposition: confidence in its existing five-year strategic plan, early progress in implementing that plan, and the current board’s experience. The company stated it completed a strategic review advised by Goldman Sachs (NYSE: GS), J.P. Morgan Cazenove, and Morgan Stanley (NYSE: MS). Whitbread reported its H1 FY27 performance shows early progress on the plan's execution. The board stated that Corvex has not presented an alternative to the five-year plan or explained how adding Gemmel would improve the plan's execution or enhance board capabilities. The board expressed concern that the appointment could create distraction during implementation. All directors plan to vote their personal shares against the resolution. Additional details are available in a shareholder circular published on October 13, 2026. The investor presentation will be available on Whitbread's website at www.whitbread.co.uk.

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10/19/2026

Starboard Value Prepares Nominate Directors at Knife River, Sources Say

Reuters (10/19/26) Herbst-Bayliss, Svea

Starboard Value is preparing to nominate directors for election to the board of Knife River Corp (KNF.N) as the investor steps up pressure on the construction company to improve its profit margins or put itself up for sale, people familiar with the matter said. The hedge fund, one of the industry's busiest investors, recently acquired a significant stake in Bismarck, North Dakota, headquartered Knife River and has urged management to boost its margins to 22% by fiscal year 2029. The company, which has a market value of $2.8 billion and has seen its stock price drop 24% over the last 12 months, reported margins of about 15% for the quarter that ended June 30. Starboard first unveiled its new investment in Knife River last month, with Jeffrey Smith, Starboard's managing member, Chief Executive and Chief Investment Officer, telling Knife River CEO Brian Gray and its board that he wants to see a "clear plan, defined accountability, and decisive action to address years of underperformance." The company responded to the letter in a filing, saying that it remains focused on margin expansion and profitable growth, and confident in both its existing leadership and strategy. The reply did not address Starboard's concerns though, in particular in absence of more details on how to achieve the margin improvement at a time when Knife River's rivals have expanded their margins to roughly 30%. Starboard is now ready to take fresh action, said the people who are familiar with the hedge fund's thinking. The fund has already lined up some director candidates, and is continuing to identify others it could nominate to the company's board, the people said. Knife River, which supplies crushed stone, sand, and gravel and manufactures and delivers ready-mix concrete for commercial, residential, and large-scale public projects, currently has seven directors, according to its website. Starboard's Smith is scheduled to address the annual 13D Monitor Active-Passive Investor Summit in New York on Tuesday where he discusses in detail some of the firm's investments. Starboard often nominates director candidates to push for operational or strategic changes at underperforming companies. Smith joined the board of Kenvue (KVUE.N) in early 2025 before it was sold, and Peter Feld, Starboard's managing member, Head of Research, joined the board of BILL Holdings (BILL.N) a year ago.

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10/18/2026

Flashlight Capital Partners and Turton Capital Urge South Korea's Orion to Abandon JoongAng Ilbo Acquisition, Citing Approximately $451 Million Burden

BigGo Finance (10/18/26)

Flashlight Capital Partners and Turton Capital have simultaneously moved to put the brakes on Orion's (KS: 271560) push to acquire JoongAng Ilbo. Flashlight Capital Partners (FCP) and the U.S.-based investor Turton Capital each sent open letters to Orion's board on the 19th demanding that it halt the acquisition plan. Both funds raised questions not only about the business rationale for the deal but also about the owner family-centered governance and capital allocation practices. The first issue raised was the financial burden. Turton Capital estimated the total burden, including debt and payment guarantees, at about 600 billion won (approximately $451.3 million), equivalent to around 14% of Orion's market capitalization. The investor argued that "the newspaper business is not the food business and is not included in Orion's corporate value enhancement plan," and that it must be asked whether a large investment unrelated to the core business serves shareholder interests. FCP, in its letter the same day, said "no synergy whatsoever can be found between a confectionery company and a newspaper company" and that "one cannot help but ask whose idea this is." It also demanded that the company halt the acquisition push and explain the background of the decision. Its position is that future large-scale acquisitions unrelated to the core business should require a stated rationale, independent review, and prompt disclosure. Orion participated in the preliminary bidding for the sale of JoongAng Ilbo last month and was named a qualified acquisition candidate, with the main bidding closing that day. JoongAng Ilbo has been pursuing a sale to improve its financial structure and normalize management since entering a workout program. The newspaper posted a net loss of 92 billion won (approximately $69.2 million) in the first half of this year alone. FCP's demands go beyond halting the acquisition. It presented five proposals and said it will await a formal response by the 13th of next month. FCP cited the owner family's compensation structure as a cause of Orion's undervaluation. It noted that Chairman Dam Chul-gon and Vice Chairwoman Lee Hwa-kyung have received large sums from both Orion and Orion Holdings even though they stepped down from registered director positions at both companies in 2013. According to last year's business report, Chairman Dam received 2.6 billion won (approximately $2.0 million) and Vice Chairwoman Lee 2 billion won (approximately $1.5 million)—far exceeding the 1.1 billion won (approximately $830,000) salary of President Lee Seung-joon, the chief executive. FCP argued that the structure must change, in which a controlling shareholder who is not a board member collects compensation outside the scope of the shareholders' meeting's review of the compensation cap. It also cited as grounds that the National Pension Service, which holds a 9.1% stake, voted against the compensation cap item four times but was blocked each time by the owner family's stake and the measure was repeatedly voted down. It also took issue with valuation metrics. Orion is the No. 1 player in South Korea's confectionery market with a 22% share and generates two-thirds of its revenue overseas, yet its enterprise value-to-EBITDA (EV/EBITDA) ratio remains at 2.7 to 3 times, according to the fund. That is far lower than the 6 times or more, and in some cases 10 times or more, at which food companies at home and abroad typically trade. Its net cash and financial assets stand at about 2.1 trillion won (approximately $1.6 billion), more than half its market capitalization, but its dividend yield is just 2.8%. FCP pointed out that the owner couple's effective dividend yield is 4.9%, higher than that of ordinary shareholders. Its M&A track record also came under scrutiny. In January 2024, Orion invested 550 billion won (approximately $413.7 million) in LigaChem Biosciences (KOSDAQ: 141080) to secure a 25.73% stake and become its largest shareholder, and the share price plunged 18% immediately after the announcement. FCP criticized the company, citing precedents in which it sold off OnMedia, Bennigan's, and Buy the Way in succession, asking whether the same mistake is being repeated. Lee Sang-hyun, FCP's chief executive, said, "It seems they have not learned lessons from past failures." The alternative proposed was the pet food business. FCP cited the high growth potential as the number of companion animals reaches six times the number of infants and toddlers aged 0 to 4 amid a worsening low birth rate, and the fact that the world's No. 1 and No. 2 pet food companies, Mars and Nestlé (OTCMKTS: NSRGY), also started out in the confectionery business. "If governance alone is fixed, it can become a 'second Samyang,'" Lee said. He added that he requested a meeting with the board and access to the shareholder register on the 15th of last month but received no response. Turton Capital also raised issues with inter-affiliate fund transactions and board independence, and demanded that more surplus cash be used for shareholder returns. With the two investors' demands overlapping, Orion's board will inevitably have to weigh shareholder sentiment when deciding whether to proceed with the acquisition. The market is watching whether this campaign will translate into actual increases in shareholder returns. JB Financial (KRX: 175330), in which Align Partners participated as a major shareholder, unveiled a plan to raise its total shareholder return ratio from 32.4% in 2024 to 45% in 2026 and to 50% over the long term, while continuing share buybacks and cancellations. KT&G also decided in September to buy back and cancel an additional 360 billion won (approximately $270.8 million) worth of shares, following the full cancellation of about 1.8 trillion won (approximately $1.4 billion) worth of treasury shares in April this year. The trend of companies that attract investor capital adjusting their dividend and buyback policies is taking hold in South Korea. For Orion, the situation is one of choosing between completing the acquisition and placating shareholders. Forcing the deal through brings with it a financial burden of 600 billion won and controversy over weakening its focus on the core business. Backing off, conversely, means losing the justification of securing a growth engine and having to give shareholders an answer on where to spend the money. It will also be hard to avoid criticism that it was passive on dividends while sitting on more than 2 trillion won (approximately $1.5 billion) in net cash. The deadline FCP set for a response is the 13th of next month.

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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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10/23/2026

Commentary: Proxy Fight for Control of Vail Resorts Board Boils Down to Institutional Investors

Tahoe Daily Tribune (CA) (10/23/26) Taylor, John

John Taylor, special to Tahoe Daily Tribune, says, "Nothing is debated more fiercely in Vail — or more often — than the strategies and decisions of Vail Resorts. Whether you are in a bar, a restaurant, a hiking trail or on a ski lift, the topic of Vail Resorts (NYSE: MTN) is bound to come up. And almost no one is short of a strong opinion. But here’s a new twist. For the first time in its history as a public company, Vail Resorts is under attack by some of its own shareholders, who are none too happy with its management or the performance of its stock. VR shares have plummeted by about 60% over the last five years, while the S&P 500 index is up 76% over that same period. The stock is down 10% over the last year, while the S&P is up a healthy 15%. Not real good. That’s drawn the ire of a Hong Kong-based investment firm called Oasis Management, which has nominated four of its own candidates to replace some of the existing members of the nine-person board at the company's upcoming annual shareholder meeting. The company has yet to set a date for that meeting, but it has historically held the meeting by the middle of December. Oasis, which currently owns 9% of VR's stock, says its directors would bring “a fresh perspective” to Vail Resorts management. While it has yet to lay out the specifics of its proposals for change, it has said it would review everything from VR's pricing strategies, marketing, food and beverage offerings to the pricing of lift tickets and lessons for kids and skiers who are new to the sport. It would also likely press CEO Rob Katz to give more serious consideration to selling some of its 42 resorts, especially the Park City resort which has drawn considerable interest from billionaire Matthew Prince. Before we move deeper into the story, let's talk for a second about how a proxy fight works. Anyone who owns Vail Resorts stock as of a designated date — we won't know that exact date till VR files its proxy statement — can vote their shares for any of the candidates for the nine seats. VR will run a slate of nine board members, all currently serving, while Oasis will run four so-called dissident candidates and another investor, Gregory Syvert Meyer, who owns less than 5% of the stock, has nominated himself for a seat. Whichever candidates get the nine most votes will be seated. While this may sound like a wonderful example of shareholder democracy, the outcome of the vote will actually be determined by a very tiny number of institutional investors. Why is that? Because a small number of investors own well over 50% of the stock, and their votes are pivotal. The largest of these investors is long-time VR shareholder Baron Capital, which owns 18.3% of the shares according to its latest filing with the U.S. Securities and Exchange Commission (SEC). After that, you have Capital Research, the ultra-secretive Los Angeles firm that manages the American Funds. American owns 11.4% of the stock, according to its latest SEC filing. Another 20% or so appears to be in the hands of index fund managers Vanguard and Black Rock, and then there's Oasis at 9% and Meyer at less than 5% (if he had more, he would have to file certain disclosures with the SEC). While Meyer is an independent candidate for the board, it is presumed he will vote his shares for himself and Oasis' four directors, though that is not totally certain. Neither Meyer nor Oasis responded to repeated requests for comments. Not a lot is known about Oasis among American investors. As noted, it's based in Hong Kong and most of its investments are in Asia. While not being a well-recognized name among U.S. investors, Oasis has gained a reputation as an ultra-aggressive investor in the Far East, where it has carried on myriad campaigns over the last decade where it has pushed for everything from replacing existing management, raising the dividend to the outright selling of the company. Seth Fischer, Oasis's founder and chief investment officer, served in the Israel Defense Forces before getting into money management. For management, hearing that Oasis just bought your stock ranks only slightly better than hearing your dog has been hit by a car. While Oasis has been mostly mute about what specific actions it would like Vail management to consider, investors should gain much greater insight during the weeks leading up to the shareholder vote. That will begin when VR management files a preliminary proxy statement with the SEC in which it will recommend that investors back the nine incumbent directors. Oasis will then respond with its own proxy touting its four candidates. Although not required by law, most dissident groups also file a shareholder letter in support of its proxy in which it will outline its criticism of existing management and board, and often back that up with specific proposals for change. That's when things start to really get interesting. VR can then follow that up with a second or even third proxy, as well as many shareholder letters as it likes, as can Oasis as the two sides go back and forth, lobbing artillery rounds at each other. Each filing and letter will most likely be able to be accessed on the Vail Resorts website. Speculating about what exactly Oasis will say about VR management over the next month has become one of the hottest parlor games in town. If it chooses to publish a letter, it's likely to hammer VR management for everything from dreadful stock performance, declining skier visits, the exorbitant price of lift tickets and lessons and the fact that its current board members own very little stock, much of what it does own coming via stock awards as opposed to purchases in the open market. How will VR counter Oasis' assault, should it be offered? It's likely to argue that Oasis is out for a quick buck and has no intention of sticking around for the long-term. If the stock goes up 15-20%, then it's gone. The best known of its board nominees, Bob Chapek, the former Disney (NYSE: DIS) CEO, is getting paid $100,000 a month to run for a board seat. If he wins, Oasis will then make him a “forgivable” $500,000 loan from Oasis to buy VR stock. Is this the portrait of someone committed to VR's long-term future or a well-known capitalist out for a quick score? Alas, it's impossible to know just what Katz & crew are thinking. So far, they've adopted a strategy that might best be compared to an ostrich burrowing its head in the sand. During last week's Vail Resorts earnings call, Katz, who is now on his second stint as VR CEO after Kirsten Lynch was fired in mid-2025, refused to answer any questions about Oasis or the proxy fight, a topic probably of greater interest to many investors than the company's lackluster quarterly earnings. VR declined to respond to requests for comment for this article. There's little doubt the vote amounts to a referendum on Katz and the rest of Vail Resorts management. In a provocative posting on September 25 on the investor online forum Seeking Alpha, a value investor named Sanjay Swamy argued that despite Vail Resorts stock plummeting about 60% over the last five years, the stock is still not an attractive buy. He lambasted the company for constantly blaming its problems on one-time events like the weather or Covid. Swamy's argument is that skiing appears to be a declining sport and Vail Resorts has failed to attract enough younger and casual skiers to produce an increase in overall skier visits. “Vail has a core consumer base that is loyal,” Swamy wrote. “However, everything else is leaking. New customers are not arriving, one-year skiers are not coming back, and the lift-ticket pool that historically converted into passholders is shrinking. This is a classic example of funnel decay. This is not something that can continue to be blamed on bad weather … My view is that the business is broken.” During last week's earnings call, Katz said he did not believe the sport was in secular decline, instead blaming the 12% drop in North American pass sales through Sept. 19 on — you guessed it — the weather. There's no doubt that North American skier visits have been declining, and Vail Resorts is forecasting they will fall again during the 26-27 when compared with the 24-25 season, the last year when snowfall was normal. What is unclear is whether these declines are solely due to weather, as Katz suggests, or more fundamental problems in the ski industry. Certainly, there are plenty of industry insiders that feel skiing is a declining business. “At the end of the day, the ski business is pretty much a no-growth business with serious inflation issues,” Aspen One CEO Dave Tanner said in June. “Frankly, pricing exhaustion, because pricing has gotten taken so much in the last 10 years, the consumer is starting to push back. So if you have that mix, what it does is it decreases the profitability of an organization, which decreases the incentive to invest into the organization … Skiing is not the juggernaut it was 10 years ago.” Katz seems to be betting that most of the problems in the ski industry are weather-related, and that business will rebound this winter. “We certainly assume that the industry is going to have a significant recovery from last year,” he said on last week's earnings call. “The only question is whether the industry is going to get all the way back to where it was in the fiscal 2025 season.” Interestingly, he said VR hopes to drive sales growth with a much greater foray into the ski rental industry, which is unlikely to be interpreted as good news by the local ski shops, many of which are already struggling after a dismal winter. “I think the single biggest opportunity financially is going to be gear,” he said. “That's not going to be in the next 12 months, but I absolutely see it as a really big transformation in how people engage and use gear.” Here are some things that shareholders will be wrestling with when considering how to vote. In the fiscal year ended July 31, which includes all the 2025-26 ski season in North America, VR skier visits were down 13.4%, and total lift revenue fell 3.5%. The difference in those two percentages is because VR raised the price of passes as well as lift tickets last year. As noted, Katz ascribes nearly all the blame for the drop in skier visits to the weather, labeling the 2025-26 season in the west as “the most difficult weather environment we've ever experienced.” But pass sales have been falling for the last three years and sales have been tepid so far this year, and the company says it does not expect them to meaningfully rebound. It hopes to make some of that up with increased non-pass lift sales. Meanwhile, investors as well as those who watch the ski industry closely — or depend on it for their livelihood — are asking: Is the problem that skiers are spooked by last year's horrific snow conditions or are there greater issues at play, ranging from the hefty cost of a ski vacation, concerns about how El Nino might impact snow in North America this season, consumers being squeezed by inflation and/or general uncertainty about the economy? Swamy noted in his post that even in the 2024-25 season, when the snow was relatively normal, Vail Resorts did not perform in line with the industry, though that trend reversed in 2025-26. Wrote Swamy: “North American skier visits fell 3% [at Vail Resorts] in [the 24-25] season when the U.S. ski industry grew 1.7% to its second-best total on record. That's five points of share given away in a good year … with no snowpack explanation available. Pass units have declined for three years … In my view, there's only so much management can blame on weather.” Like Tanner at Aspen One, Swamy contends that one of the ski industry's biggest problems is that it has made the cost of skiing far too expensive for many people. For years, Vail Resorts has been growing sales far faster than the increase in skier visits. How do you do that? By raising prices every year. “I believe it is squeezing more money from a shrinking user base,” Swamy wrote. “Strip away the price increases and this company is going backwards.” Vail Resorts' response seems to be to brag that, despite its problems, it has outperformed the industry and that if we were to get a decent snowfall this season, our problems will largely be behind us. “We will outperform the rest of the industry, weather-adjusted, on lift tickets this year,” he said. “What this all comes down to, in terms of what you think will happen to sales this season, is what do people think about the U.S. ski industry for this next year.” Obviously, Oasis, Meyer and Swamy do not agree. They see many of the company's current problems as self-inflicted. Swamy laid some of the blame for Vail Resorts problems on its disregard for down-home customer service of the kind pioneered by the late George Gillett, a contention that many longtime locals would sympathize with. “In my view, Vail has gotten too corporate for its own good,” Swamy wrote. “It's lost its mom-and-pop feel…The way I interpret this is that Vail has lost touch with its customers.” Moving forward, both Oasis and Vail Resorts are likely to unleash a team of so-called proxy solicitors to court the company's largest shareholders — and hopefully gain their support. Oasis faces an uphill fight — some would say impossible — if it hopes all four of its board candidates will get elected. It's very hard for dissidents to win a proxy fight, especially one like this where so many of the shares are in such few hands. It would be almost impossible for Oasis to prevail unless it convinces Ron Baron, the 83-year-old billionaire who heads Baron Capital, to support its candidates. Historically, Baron has strongly supported VR management. However, watching your stock go down 60% over five years while the market in general is booming is a bitter pill to swallow. There's a reason proxy fights only break out against companies whose stock has languished and whose management is regarded as less than stellar. So how will all this play out? Frankly, there's no way to know. There's most likely a lot of cajoling and arm-twisting going on behind closed doors among VR management, the dissidents and large shareholders. It is not beyond the pale that VR management might reach a deal with Oasis prior to the shareholder meeting to seat one or two of the Oasis board nominees — or Meyer — in exchange for canceling the proxy vote. The dissidents would then use those seats to pressure management for changes it believes would drive up the stock price. What would be in it for Vail Resorts management to settle before a vote? One, it would get the company out of the headlines where the decline of the stock and declining skier visits has resulted in it being pilloried by many of its own shareholders. It would also save them the potential embarrassment of losing one or more seats to the dissidents. In exchange, VR would likely insist that Oasis sign a standstill agreement where it agrees to neither buy more stock nor sell any of what it already owns for a specified period. This not only allows things to settle down but also precludes Oasis from making all sorts of noise to drive the stock up, say, 15% or so, and then it unloads its entire position at a hefty profit. Assuming Oasis were to gain a couple board seats and stick around, what would it do? This is always hard to predict, but almost certainly they'd want management to perform a comprehensive review of its pricing strategies as well as review any plan it must drive up skier visits. It has also said it wants to participate in any discussions regarding either acquisitions Vail Resorts is considering or dispositions of assets, such as the proposal by Prince to buy the Park City resort. The problem with selling lucrative resorts such as Vail, Park City or Whistler is that it would greatly diminish the appeal of the Epic Pass to a significant number of skiers, especially tourists, and thereby further erode the value of the company. Would Oasis push for the sale of the entire company? Possible, but unlikely. For one thing, the list of buyers would be very, very short, perhaps nonexistent. However, it would not be unreasonable to expect Oasis to pressure VR to unload marginally profitable or unprofitable properties or divisions. They might also apply pressure to reduce debt, which has drifted into the uncomfortable range. As of the end of fiscal 2026, net debt was nearly four times trailing earnings before interest, taxes, depreciation and amortization, referred to as EBITDA in financial circles. That's up from 3.4 times a year ago. That's a lot of debt. Worse, the company chewed up over $200 million in cash in fiscal 2026, roughly half its cash hoard going into the year — leaving it with about $250 million in cash going into the new year. Another horrific season this winter and the noose will start to tighten around the company's neck and the company's 6.6% dividend will almost surely have to be slashed, which would likely cause the stock to plummet again. Last year the company paid out $317 million in dividends, which many would describe as a not-so-subtle tactic to prop up the stock. VR chewed up nearly two-thirds of its operating cash flow just paying dividends. Short-term, that keeps some of your shareholders happy, but long-term it's unsustainable unless business picks up. But here's a big issue going forward: Stocks trade on multiples and earnings growth. So how is Vail Resorts going to get that growth? It has historically been able to drive earnings growth by employing two highly effective tactics. One, it bought up resort after resort, booked the sales from those resorts and then stripped out the costs of duplicative accounting, legal, administrative and marketing departments. In so doing, it sustained consistent margins from the mountain segment in the 32-34% range until fiscal 2023. In essence, it used the acquisitions to manufacture sales and earnings growth. Second, it raised prices year after year, which allowed sales to grow faster than ski visits, as we have already seen. As a result, margins from the mountain segment have been falling since 2023 while sales have not meaningfully increased since the 2022-23 ski season. In fact, they haven't increased at all. Swamy thinks the pricing power that historically allowed VR to raise pass and lift prices every year has dissipated. “The 26/27 season Epic pass launched at $1,089, a 3.6% increase, the smallest year over year bump since 2021, alongside a 20% discount for skiers 13 to 30. I'm skeptical of any argument that Vail's demand is healthy. If it were, it wouldn't have to cut its price increases or initiate discount programs. In my opinion, Vail doesn't have pricing power.” So the question is this: With very few North American resorts of any scale left to buy at an attractive price and lift ticket prices having hit the point where many families can no longer afford a ski vacation, what do you do? You have a labor-intensive, capital-intensive business with considerable exposure to seasonality, the economy and climate change. And a fair amount of debt at a time when interest rates are rising. That, my friends, is not the definition of an attractive business. It's going to take managerial expertise and guile to navigate these issues. If Oasis were to gain a couple of board seats, would that help? Hard to know. The best known of its candidates — at least to the business community — is Chapek, the former Disney CEO. On the surface, Chapek would be a major upgrade in the quality of Vail Resorts board. But there are questions about his motivation to be involved in this fight at all. Is he simply a rental candidate designed to provide Oasis much needed credibility with investors during the proxy fight? According to an Oasis SEC filing, Chapek is being paid $100,000 a month by Oasis for standing for election and providing consulting services during the proxy fight. Oasis disclosed that it will also make him a $500,000 “forgivable” loan to buy Vail Resorts stock in the event he wins a board seat. That is very unusual. VR could very well attack that arrangement, arguing that Chapek is a paper candidate being paid by Oasis not only to run, but serve if he happens to win. So far, Chapek doesn't appear to be hugely involved with the proxy fight. He has written a book on his Disney years — he was fired in 2022 after three years as CEO — called Behind The Castle Walls and is now on a book tour. But there's no doubt his presence on the board would give it greater gravitas. In addition, MGM Resorts International (NYSE: MGM) CEO Bill Horbuckle was added to the board in July. The addition of Hornbuckle and possibly Chapek would give the board a measure of experience and savvy that it has previously lacked. No matter how the proxy fight comes out, there's no doubt VR faces considerable challenges to not only get the stock price up but restore it to a position of respect among investors, Wall Street analysts and the skiing public. The outcome is anything but certain, though the need for change seems obvious to many observers. Wrote Swamy, “This company shows that [the strategy of] scale plus price has run out of road and that the company now has to spend real money buying back the guest experience it traded away…Unfortunately, I believe it will take a while for those changes to benefit the company.”"

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10/22/2026

Here Are Five Possible Devon Energy Suitors as Investors Spark M&A Chatter

Bloomberg (10/22/26) Wethe, David; Crowley, Kevin

Just five months after buying Coterra Energy Inc. to create one of the world’s biggest shale producers, Devon Energy Corp. (NYSE: DVN) is under pressure from investors to offload key assets or sell itself. That’s fanning speculation about potential buyers. Devon Chief Executive Officer Clay Gaspar closed the deal with Coterra in May, making the $55 billion combined company a powerhouse in the Permian Basin of West Texas and New Mexico, the largest U.S. oil field. He pledged to streamline Devon’s holdings and this month announced an agreement to sell its drilling portfolio in the Eagle Ford basin of South Texas to Crescent Energy Co. (NYSE: CRGY) for about $4.2 billion. But Kimmeridge Energy Management Co. says Devon needs to divest more assets — a push that comes even as high oil prices have propelled the shale producer’s shares to a gain of more than 30% so far this year. TOMS Capital Investment Management LP called for an outright sale of the company before the Eagle Ford deal, CNBC reported, and the investor has so far given no indication that it’s backing away from that stance. While the Eagle Ford sale is a positive step for Devon, it’s “insufficient to unlock value in their preeminent Permian position. We would expect them to sell another $10 billion of non-core assets,” Mark Viviano, a managing partner at Kimmeridge, said in an emailed statement. “Absent that, they should sell the company to someone who will.” A representative for TOMS declined to comment. A spokesperson for Devon didn’t respond to requests for comment, and the company has not publicly addressed the investors’ calls for the driller to sell itself. Devon is among several shale companies looking to sell assets to pay down debt incurred during a massive wave of industry consolidation that kicked off about three years ago. As U.S. oil production growth slows after more than a decade of breakneck expansion, operators are merging so they can lock down the best remaining spots. Investors, meanwhile, are urging the producers to keep costs under control and boost returns. “We believe the Eagle Ford was step one, not the endgame,” energy analyst Timm Schneider said in a note to clients. Here are a few potential Devon acquirers, according to analysts and investors: Diamondback Energy Inc. (NASDAQ: FANG) Diamondback has a commanding position in the eastern end of the Permian, known as the Midland Basin. Acquiring Devon would give it a similar footprint on the Delaware side to the west. Diamondback raised M&A expectations recently by guaranteeing key shareholders board seats if their stake were diluted, something that may occur if the company issued stock for a big deal. Gabe Daoud, an analyst at Truist Financial Corp. (NYSE: TFC), said the combined entity would be a “Permian powerhouse” producing roughly 2 million barrels of oil equivalent a day — a level that would rival ExxonMobil Holdings Corp.’s (NYSE: XOM) output from the basin. Acquiring Devon would be more of a financial stretch for Diamondback than for some of its larger rivals. Diamondback has long pitched itself to investors as a Permian-only operator, but that would change with a deal for Devon. A purchase of that size would likely mean Diamondback would have to sell off a variety of assets gained in the acquisition, including Devon’s natural gas business in the Marcellus. ConocoPhillips (NYSE: COP). ConocoPhillips’ assets would overlap with Devon’s in the Permian and in North Dakota’s Williston shale basin, while the larger company would be well-placed to handle Marcellus natural gas. The company has previously shown an appetite for striking sizable shale deals, although oil prices were lower when it made those acquisitions earlier this decade. Andy O’Brien, who was elevated to the role of CEO last month, has pledged to continue former leader Ryan Lance’s mantra of capital discipline, so a purchase this large could run counter to that goal. A ConocoPhillips spokesman declined to comment on potential acquisitions. Chevron Corp. (NYSE: CVX). Chevron has the best financial capacity to buy Devon for a 20% premium and generate annual returns greater than 8% over a 25-year inventory life, assuming various other assets get sold after the acquisition, according to Schneider. It has a vast Permian Basin position already, providing substantial overlap with Devon. Chevron has recently slowed its Permian growth to a plateau of about 1 million barrels of oil equivalent a day with the intent of boosting profits at the expense of production. Buying Devon would appear to run contrary to this strategy. EOG Resources Inc. (NYSE: EOG). EOG is seen as the strongest operator in the shale industry and could prove effective at managing Devon’s drilling portfolio, James West, an analyst at Melius Research, said in an interview. EOG’s vast holdings could also pair well with Devon’s multi-basin assets. EOG is also very selective about doing large acquisitions, preferring instead to expand through small deals and organic growth from its own discoveries. ExxonMobil. Exxon has the most significant opportunity for cost savings by buying Devon and has the highest-value stock among potential buyers, making it easier to execute a deal, according to Schneider. The oil major also has contiguous operations in New Mexico, which has some of the Permian’s most productive fields. Exxon would have to sell assets in four basins to make the deal work, Schneider said. The oil giant also has to decide how to allocate capital across a global suite of assets and opportunities, meaning potential deals have to clear a high bar. ExxonMobil is looking at investing in shale production in Azerbaijan, liquefied natural gas in Mozambique and is exploring for oil in Trinidad & Tobago, the Eastern Mediterranean and elsewhere.

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10/18/2026

The $38 Billion Battle for Australia’s Top Gold Miner May Be Just Beginning

Sydney Morning Herald (10/18/26) Toscano, Nick

An international mining giant has taken its $38 billion pursuit of Australia’s largest gold producer directly to local investors, offering them the muscle to build a globally competitive gold behemoth and hoping their pressure will help force the board to the negotiating table. Executives from South African-based miner Gold Fields (NYSE: GFI) brought forward plans for an Australian investor roadshow last week, seeking to boost its profile and win over key fund managers after Western Australia’s Northern Star Resources (ASX: NST) rejected its takeover attempt as “highly opportunistic.” Gold Fields chief executive Mike Fraser spent the week meeting with Northern Star’s institutional investors across Perth, Sydney and Melbourne, noting that there appeared to be widespread consensus on the “strategic logic” of the tie-up. Slides shown at investor briefings stated that combining the two companies’ projects in Western Australia would forge a new global gold production powerhouse in a “world-class province,” capable of rivaling Barrick (NYSE: B) and Newmont Corporation’s (NYSE: NEM) Nevada Gold Mines joint venture in the United States, and Agnico Eagle’s (NYSE: AEM) Abitibi hub in Canada. If the takeover ultimately succeeds, the combined group would rank as the second-biggest gold producer globally, behind Denver-based Newmont. It would control eight of Australia’s 20 biggest gold mines – including Northern Star’s massive “Super Pit” in Kalgoorlie – and produce 4.1 million ounces a year of the precious metal. “Creating a truly competitive global mining gold major that is centered out of WA is something that’s quite compelling in our view,” Fraser said. In an interview in Melbourne, Fraser revealed that his discussions with Northern Star began more than a year ago after Gold Fields acquired a 3.5% stake in the company via its acquisition of Gold Road. While some investors are pressing Gold Fields to sweeten its bid after Northern Star rejected its initial shares-and-cash proposal for being too low, Fraser is urging the board to first hold talks with Gold Fields, agree to the merits of the tie-up and grant access to its books. “Let’s agree [to] the strategic logic of it and align that this is something we want to pursue,” he said. “I think if we can then go in and do due diligence, firm up the value, then we can have a conversation around value.” However, Northern Star chairman Michael Chaney said the board maintained that Gold Fields’ proposal did not appropriately recognize the quality and long-term value of the company’s portfolio of high-quality, long-life gold assets in tier-one mining jurisdictions, and its growth profile. He said the company’s directors remained focused on acting in shareholders’ best interests. “This includes engaging with parties on proposals that represent value above what we believe Northern Star can generate as a standalone company,” Chaney said. “The Gold Fields proposal was not in that category.” Under Gold Fields’ initial offer, Northern Star shareholders would have received 0.3125 new Gold Fields shares and $7.25 in cash for each share they own. The bid valued Northern Star at $38.7 billion, a 22% premium based on both companies’ share prices on the last trading date before it was lobbed. Northern Star’s shares are now more than 10% higher than they were the day before news of the Gold Fields approach leaked. “At current market values, the Gold Fields proposal is now at a discount to Northern Star’s share price,” Chaney said. One of the top shareholders whose support Gold Fields is seeking to rally is U.S.-based Elliott Investment Management, which has built a 6% stake in Northern Star and has been pressuring the board to make sweeping changes. The hedge fund has criticized Northern Star’s sharemarket underperformance this year and urged it to consider a sale or asset divestments. Gold Fields’ attempted takeover of Northern Star follows a multi-year rally in gold prices, fueled by intensifying geopolitical tensions, worsening inflation fears, erratic policymaking in the United States and an erosion of trust in the U.S. dollar. Gold, the precious metal prized by civilizations for thousands of years for its rarity and use in jewelry, tends to be most sought after these days by investors as a safe place to store wealth during periods of extreme financial uncertainty. Investors said the approach for Northern Star reflected the growing strategic appeal of gold miners. “Gold miners are back in favor,” Betashares investment strategist Tom Wickenden said.

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10/17/2026

Commentary: It’s Too Late for Small Fixes at Pepsi

Wall Street Journal (10/17/26) Wainer, David

PepsiCo’s (NASDAQ: PEP) declining performance has intensified calls for fundamental restructuring, as its stock trades at a steep discount to Coca-Cola (NYSE: KO) despite efforts to revive sales. Elliott Management invested $4 billion and pushed for operational streamlining, but results remain disappointing. North American snack profits have fallen, beverage volumes are declining, and competitors are outperforming Pepsi in growing categories such as protein drinks. Consumers are increasingly price-sensitive and favoring healthier options, while Pepsi’s sprawling operations create additional complexity. CEO Ramon Laguarta faces mounting investor criticism over slow progress, inconsistent strategies, and reduced profit forecasts. Analysts argue that incremental measures, including price cuts, new products, and increased marketing, cannot adequately address the company’s structural challenges. The article suggests Pepsi should consider more substantial changes, including selling or spinning off its North American bottling operations, separating its beverage business, or divesting underperforming brands such as Quaker. A standalone snacks company could potentially command a higher valuation, while independent bottlers might improve beverage profitability and allow management to focus on brand development. However, restructuring would be expensive, disruptive, and time-consuming, and Pepsi lacks the extensive independent bottling network that helped Coca-Cola successfully reorganize. Although breakups are not guaranteed to succeed, investors increasingly believe Pepsi must simplify its operations, sharpen its strategic focus, and accelerate change to restore growth and shareholder confidence.

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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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10/6/2026

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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10/2/2026

Why Washington’s Proxy-Adviser Crackdown Could Reshape Corporate Governance

Pensions & Investments (10/02/26) Degen, Courtney

The Trump administration, U.S. Securities and Exchange Commission (SEC), and Republican lawmakers are pursuing several measures targeting proxy advisers and the broader proxy-voting process, potentially reshaping corporate governance. The largest advisers, Institutional Shareholder Services (ISS) and Glass Lewis, face increased scrutiny over their recommendations, methodologies, and potential conflicts of interest. The SEC has asked a federal court to compel ISS to provide information about its recommendations and votes, while ISS argues that its activities are protected speech. Separately, an SEC proposal would rescind Rule 14a-8, potentially making shareholder proposals more difficult and expensive by leaving their treatment primarily to state law and company governing documents. A congressional bill would require periodic SEC studies of proxy advisers and annual voting reports from institutional investors that use them. Industry participants warn that regulatory and litigation risks could discourage smaller proxy advisers from entering the market, reduce the availability or independence of proxy advice, and threaten the voting infrastructure provided by major firms. They also argue that these changes could reduce shareholders’ influence over corporate decisions. Supporters of greater oversight contend that proxy advisers should face stronger transparency and accountability requirements. Overall, the article describes the measures as part of a broader debate over the balance of power between corporate management and shareholders in U.S. public companies. Critics say the combined initiatives could narrow shareholders’ ability to propose resolutions, influence votes, and participate in governance, while increasing management’s relative control. The outcome could affect how institutional investors evaluate proposals and exercise voting rights across public companies.

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10/2/2026

Shareholders Push Companies to Help Retain Proxy Proposal Rights

Bloomberg Law (10/02/26) Hutchinson, Drew

While the U.S. Securities and Exchange Commission (SEC) pursues an end to mandatory votes on corporate shareholder proposals, investor advocates are pushing companies themselves to step in and help preserve existing rights. The burgeoning pressure on companies ranging from Microsoft Corp. (NASDAQ: MSFT) to Oracle Corp. (NYSE: ORCL) comes as the SEC seeks to repeal an 84-year-old regulation compelling companies to hold annual votes on shareholder resolutions. States will have the option to fill a regulatory gap if the rule goes through, but in the meantime, stockholders are going straight to the source. Independent shareholder advocate James McRitchie wrote to Costco Wholesale Corp. (NASDAQ: COST) last week asking the company to oppose the SEC's plans in public comments, according to an email seen by Bloomberg Law. Similarly, investment firm Zevin Asset Management contacted its 30 portfolio companies mid-September urging them to speak out publicly against the proposal, express concerns to the agency's commissioners, and maintain the status quo, according to sustainable investing director Marcela Pinilla. Meanwhile, the New York State and New York City comptrollers' offices also called on every publicly traded company to keep accepting the proposals. Other campaigns began earlier. Noting SEC leaders' increasing condemnation of the proposal process, the National Legal and Policy Center's shareholder arm submitted resolutions earlier in the year at a half-dozen companies. One was withdrawn after Microsoft agreed in August to keep accepting proposals that meet existing stock ownership requirements for one year, regardless of what the agency does. Two similar proposals will see a vote Oct. 13 at Procter & Gamble Co. (NYSE: PG) and Nov. 18 at Oracle. Shareholder proposals can address anything from board practices to diversity, equity, and inclusion. Companies saw an increase in environmental and social justice proposals in the early 2020s following the death of George Floyd, but that trend has since dropped off. In the 2026 proxy season, governance proposals — which ask for measures like independent board directors or certain shareholder rights — were king. Shareholders see Rule 14a-8, the regulation in question, as a civil, productive way to put key issues in front of companies. Hedge funds have the clout to call up CEOs, but smaller proponents rely on the rule for access, said Paul Chesser, director of the NLPC’s Corporate Integrity Project. “There’s relatively few of us,” he said. “They don’t have to deal with a lot.” Chesser’s organization has holdings in a couple dozen more companies where it could submit proposals before next spring’s proxy season, when most large companies hold their annual meetings. Future resolutions would probably focus on preserving more aspects of the current federal rule, not just the minimum stock ownership requirements it pursued at Microsoft and Oracle, he said. Whether companies will embrace shareholders’ pleas for action is up in the air. After asking Costco to submit comments to the SEC opposing the rollback, McRitchie received a response from the company’s general counsel, John Sullivan, according to an email seen by Bloomberg Law: “Thanks for the feedback. We are evaluating the SEC proposal and your comments.” “The near term is just going to be a lot of issuers taking different paths,” said Brent Trame, partner at Thompson Coburn LLP. Ultimately, companies will probably keep including at least some shareholder proposals if the existing rule vanishes, said Frank Zarb, partner at Proskauer Rose LLP. Companies already got a taste of the shareholder proposal process without the SEC. The agency decided last November to stop settling disputes between shareholders and companies about which proposals were required to go to a vote — a policy it said it will continue until further notice. Some businesses operated during the 2026 proxy season as they had in every other year, while others seemed more comfortable excluding resolutions, said Timothy Smith, senior policy adviser at shareholder group Interfaith Center on Corporate Responsibility. It will be the same disparity if Rule 14a-8 disappears, he said. The SEC views state legislatures and courts as the proper venues to handle shareholder proposal rules, an agency spokesperson said in a recent press briefing. What states do will also dictate how companies function going forward. Some states could create a mandatory shareholder proposal process, while others could let companies opt in — in which case some would and others wouldn’t, said Benjamin Edwards, a law professor at the University of Nevada, Las Vegas. Two-thirds of Fortune 500 companies are incorporated in Delaware. But SEC Chairman Paul Atkins has questioned whether the state’s laws guarantee the right to non-binding shareholder proposals, and even invited companies before last proxy season to get a Delaware legal opinion stating so. No one took him up on it. Delaware’s Corporate Law Council, which advises the general assembly on business code updates, has been studying and deliberating the implications of threats to Rule 14a-8 for months, Secretary of State Charuni Patibanda-Sanchez said in an emailed statement. “Given Delaware’s expertise in corporate governance, we are the best jurisdiction able to propose a solution that meets the needs of the market,” she said. The best shareholder proposal framework for companies is sort of like wine, Edwards said: “What is a better fit for one company and their situation may not be a better fit for another.”

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10/1/2026

U.S. Companies Adapt to Stewardship’s ‘New Normal’ After SEC Changes

Responsible Investor (10/01/26) Webb, Dominic

The U.S. Securities and Exchange Commission’s (SEC) updated guidance on ownership filings caused a degree of panic among large investors when it was published last year. The regulator said large shareholders or groups that engage on certain issues and link voting decisions to company actions may lose their passive investor 13G protection, and trigger more onerous 13D filing requirements for activist investors. Investors responded to the guidance by canceling meetings on extremely short notice – even in the middle of activist proxy fights. Some would even show up and not say a single word for the entire meeting, according to market participants. The radical reordering of the U.S. engagement rulebook then continued, with the SEC stepping back from responding to no-action requests on shareholder proposals, and proposing the rescission of federal rules governing proposals altogether. Investors and shareholder advocates have made their views clear on the changes, but corporate advisers say the landscape could also be unhelpful for companies themselves. Chris Hayden, North America managing director at shareholder engagement and proxy solicitation firm Georgeson, says he is not sure the problem the SEC attempted to solve on 13D/G was actually a concern for corporates. “I think investors and issuers had gotten to a point where there was a high level of comfort having meaningful engagement and you didn't see a lot of trading votes for certain activities,” he says. And in areas where many corporates would like changes, such as the shareholder proposal landscape, the new environment has created unwelcome uncertainty. The SEC is consulting on whether to rescind Rule 14a-8, governing the inclusion of proposals on corporate proxy materials. “To be frank, most companies don't view the shareholder proposal process too positively,” says Michael Mencher, special counsel at law firm Cooley. “A lot of companies are frustrated by the politicization of it in recent decades on both sides of the spectrum. It feels like, for many companies, they're in a 'can't win' scenario no matter what they do.” However, he adds that there is a “better the devil you know” dynamic among firms, who have built structures around the current rules, which have been in place since World War II. Aside from Texas, which implemented a state law allowing companies to set filing thresholds, no company or state has set its own rules for shareholder proposal filing, leaving a number of question marks should rescission go ahead. In Delaware, where around two-thirds of S&P 500 companies are incorporated, the Council of the Corporation Law Section of the Delaware State Bar Association has said it will integrate the proposals into its annual review of Delaware’s corporate statutes. “Boards are not sure how exactly the landscape will shift,” says Iliana Ongun, co-head of the public M&A practice at law firm Milbank. “There’s likely to be a meaningful period of uncertainty as we see whether states pass legislation that provides a clear path to inclusion or exclusion of shareholder proposals in the proxy statement, or whether those states pause and leave room for private ordering.” In the absence of state or federal rules, market participants expect that companies may adopt rules for filing in their own bylaws, known as private ordering. One possible template for this came in 2010, when the SEC attempted to allow shareholders to include their own director nominees in a company’s proxy statement if they collectively held more than 3 percent of shares for at least three years. While the rule was struck down in court, many companies adopted proxy access in their own bylaws after receiving shareholder proposals requesting they do so. The National Legal and Policy Center, a prominent filer, has already filed at Microsoft (NASDAQ: MSFT), Procter & Gamble (NYSE: PG), and Oracle (NYSE: ORCL), requesting them to adopt a policy allowing proposals on their ballot subject to certain ownership thresholds and compliance with other aspects of 14a-8. According to a document seen by Responsible Investor, Microsoft has agreed to continue tabling resolutions for its 2027 annual meeting in exchange for a withdrawal. A spokesperson for the firm said that the agreement “provides Microsoft and its shareholders a clear and predictable process for the next proxy cycle.” Procter & Gamble is recommending a vote against, as the request comes in response to regulatory changes that are yet to occur, but its AGM in October will provide an early pulse check of investor sentiment on the topic. Cooley’s Mencher warns that voluntary approaches could prove to be tricky for companies to implement. “You’re telling us we have to turn our corporate secretary into a private SEC that has to be judge and jury on these proposals and then justify itself? “It’s just a business companies don’t want to get into.” If ownership thresholds stay the same, Mencher expects firms that introduce private ordering to give themselves the ability to manage the number of proposals they have on their proxy card every year, and avoid proposals “that are really a distraction and counterproductive.” Many companies’ bylaws already permit shareholders to submit business for consideration at an annual meeting independently of Rule 14a-8. This is subject to certain advance notice and procedural requirements, and has rarely been invoked as Rule 14a-8 offered an easier and cheaper avenue, according to a note by law firm Paul Weiss. “Companies should review their bylaws now,” says Milbank’s Ongun. “Boards should work to ensure that their advance notice bylaw provisions are defensible and appropriate for the company’s governance profile, as well as being well drafted.” Companies and investors have had more time to adapt to the SEC’s 13D/G changes following the initial disruption. “In many instances, the investor has basically said it’s up to the issuer to set the agenda,” says Georgeson’s Hayden. “If there’s a hot topic, the issuer has to broach the topic.” The changes have also reduced transparency for companies as to investors’ thinking. Last year, DWS paused its U.S. engagements until September, and avoided sending post-AGM letters to U.S. companies explaining votes against management due to “regulatory uncertainties.” Similarly, RBC Capital Markets said in a note that investors have softened language in their voting policies, stripping out details on possible voting decisions and issues of concern, and altogether reducing detail. “Less transparency into specific voting decisions means that voting outcomes may become less predictable for corporates,” the bank’s analysts said. The SEC recently issued updated interpretations on some of the 13D/G conversations, aiming to allow large shareholders to have conversations initiated by issuers and to seek clarification on certain issues. Carmen Lu, a partner in the M&A and activism defense practice at Paul Weiss, says these updates create “unofficial safe harbors” for issuer-shareholder discussions, and indicate that the SEC may have been surprised by the strong reaction to the original changes. Regardless of the avenues available to investors to raise their concerns, “shareholder engagement isn’t going away,” says Ongun. “I think the question is whether it gets channeled through a structured process at the state level, or it shifts into less predictable channels like litigation and proxy contests. “Vote-no campaigns, open letters, books and record demands, fiduciary litigation – those all remain as potential tools for activists to use to further their agendas.” Investors have already engaged specific directors at firms they believe are taking advantage of the SEC’s pullback from no-action requests, and RBC Capital Markets analysis found that companies identified by the Interfaith Center on Corporate Responsibility as having weak arguments to exclude proposals saw elevated opposition and significant votes against specific directors. However, Lu warns that vote-no campaigns may draw more scrutiny to director performance but “very rarely succeed in ousting a director.” “I don’t think these campaigns really move the needle in most situations,” she says. “When you launch too many vote-no campaigns, you also lose credibility and the market stops noticing. It’s like the boy who cried wolf.” The changing market environment is also introducing uncertainty for firms, with the rise of customized voting reducing the influence of proxy advisers’ house views. “ISS and Glass Lewis’ influence is waning, but still meaningful,” says Lu. “The transition phase over the medium to longer term towards customized voting is going to create a fair amount of uncertainty, and it's going to be hard to know for sure how investors are going to vote.” Meanwhile, AI is increasingly being integrated into stewardship. Investors and proxy advisers are upping their use of machine learning tools to read proxy statements and collect information – and even to make voting recommendations, says Hayden from Georgeson. “I think issuers need to start thinking about their proxy statement and is it AI friendly, AI readable?” he says.

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9/29/2026

Nidec’s Unending Turmoil Raises Specter of Breakup or Takeover

Bloomberg (09/29/26) Takahashi, Nicholas; Kiyohara, Mari

Nidec’s (TYO: 6594) prolonged accounting crisis, a potential new ¥1 trillion ($6.4 billion) impairment charge and the replacement of its CEO have triggered a stock rout, making the once-formidable blue chip a much-weakened takeover target after years of turmoil. A writedown of that scale, as reported by a local magazine this week, would mark one of the biggest such charges by a Japanese company. The company announced Tuesday the departure of CEO Mitsuya Kishida, 66, after less than three years on the job. He’ll be replaced by Chief Technology Officer Michio Kaida, 70, effective immediately. With shares falling 20% this week and now worth about one-third of their 2021 peak, the ongoing chaos increases the odds of Nidec becoming a buyout or breakup candidate. Oasis Management already owns 8% of the manufacturer, and has pushed for stronger governance and measures to unlock value. The crisis puts Nidec at risk of joining Olympus (TYO: 7733), Nissan (TYO: 7201), and Toshiba in the ranks of Japanese companies that fell from grace due to management upheaval and weak corporate governance. “The more battered the company, the more attractive it would be as a takeover target,” said Julie Boote, an analyst at London-based research firm Pelham Smithers Associates. “Confidence in management has also taken a beating, so the timing to put a bid in is perfect.” But one potential stumbling block to any deal involving Nidec’s future may be its hard-driving yet tarnished founder, Shigenobu Nagamori, who remains a top shareholder. Nagamori, 82, who built Nidec through aggressive acquisitions and an unforgiving work culture, stepped down as CEO in 2024 — before the first inkling of the accounting scandal that engulfed the company was disclosed the following year. He relinquished his last remaining title at Nidec in February, but still exercises sway at the company through his 8.3% stockholding. Kishida’s departure was announced a day after the Diamond report, which caused Nidec to issue a statement that it was considering changes to leadership and a large impairment charge. The manufacturer is scheduled to restate some of its past results on Wednesday. The smoldering accounting scandal involves Nidec subsidiaries in Italy, Switzerland and China, as well as its automotive inverter business. The company has acknowledged years of improper balance sheet practices, including overstating raw-material and inventory values, misstating customs declarations, booking government grants as revenue and capitalizing labor costs to defer expenses. The Tokyo Stock Exchange has already warned of a potential delisting of its shares if Nidec fails to prove its internal controls have improved. The stock’s recent removal from the benchmark Nikkei 225 and Topix equity indexes has only deepened investor anxiety. “This accounting misconduct issue and the response has taken an extremely long time from the outset, which has repeatedly made me think ’something isn’t right here,’” said Ryoutarou Sawada, a senior analyst at Tokai Tokyo Intelligence Laboratory. “The market wants the company to properly resolve these issues once and for all.” The motor maker’s market value now stands at around ¥2.7 trillion, down from roughly ¥8 trillion in 2021. While the collapse in Nidec’s valuation has lowered the bar for a possible bid by an investor for more control over Nidec’s fate, an outright takeover would still require a considerable amount of money to pull off. Given that a ¥1 trillion impairment would weaken a balance sheet with about ¥1.7 trillion in equity, a leveraged buyout would also be difficult to pull off. One plausible scenario could involve a partial breakup like the one that befell Toshiba after an accounting scandal and Westinghouse’s collapse a decade ago. The Japanese electronics conglomerate sold off its medical unit, then later its prized memory-chip operations to raise cash. Toshiba still faced years of investor pressure over its strategy, governance and asset sales before shareholders ultimately rejected a full split and a Japan Industrial Partners-led buyout took it private in 2023. A Nidec breakup would most likely involve the automotive business, which has seen shrinking profits, while the appliance and industrial, precision-motor, machinery and components divisions remained profitable. Selling, spinning off or restructuring the supplier of car motor parts would help shore up the value of the stronger businesses. Either way, unresolved accounting issues make it difficult for any takeover or breakup action, according to Naoki Fujiwara, a senior fund manager at Shinkin Asset Management. “Unless the impact of this type of accounting fraud becomes somewhat clear, it will be quite difficult for other parties to make a move on them,” he said. Another challenge is Nidec’s classification as a “core sector” company critical to national security and the development of domestic industries under the Foreign Exchange and Foreign Trade Act, with foreign investors required to submit prior notification when acquiring its shares. A big question is how Oasis may seek to shape Nidec’s future. The Hong Kong-based investor, which disclosed its stake earlier this year, has blamed the accounting crisis on a culture distorted by “excessive pressure” and the domineering influence of its founder. Even so, Nidec’s business is “highly competitive and possesses significant growth potential,” Oasis said in March. Its precision-motor technology and entrenched market positions remain attractive to investors, according to Ikuo Mitsui, a fund manager at Aizawa Securities. “If the company can emerge from this as a sufficiently clean organization, there will still be investors drawn to its technology and market share,” he said. Drama has always defined Nidec. During its era of hypergrowth in the two decades prior to the pandemic, revenue doubled around every six years and Nagamori wasn’t shy about telling investors that he knew best how to run the company. He challenged them to fully accept his hands-on management style and strategy, or go away and put their money elsewhere. His relentless quest for growth and streak of acquisitions fueled a rise in Nidec’s market value — making him a billionaire and the company one of Japan’s most respected businesses. Nagamori’s penchant for rolling up smaller companies in the motor-making supply chain impressed investors as he seemed to squeeze out greater profits every year. Even as his age crept beyond 70, Nagamori cast aside a series of executives he groomed to be potential successors, ostensibly after deeming them unworthy of the CEO role. But in 2020, he seemed to have finally settled on a successor, anointing Jun Seki as CEO. But the founder, who remained chairman, soon clashed with the former Nissan executive, calling that choice his “biggest mistake” after ousting Seki in 2022. The following year, Nidec struggled with weak demand for electronics and automotive parts, forcing the company to report a 48% drop in operating profit — a disaster by Nagamori’s exacting standards. In April 2024, Nagamori tapped Kishida, who had led the mobile communications business at Sony Group (NYSE: SONY), to lead Nidec as CEO. The same year, Nidec made a hostile bid for machine tool maker Makino Milling Machine (TYO: 6135), widely seen as a play to recapture some of the old Nagamori merger magic. Nagamori and Kishida abandoned the takeover attempt in May 2025, just a month before the first batch of accounting irregularities emerged.

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9/28/2026

A $120 Billion Gold Drama Hits Denver, and Elliott has a Starring Role

Australian Financial Review (09/28/26) Macdonald, Anthony

Large-cap M&A is part theater, part sport; a battle of corporate strategy and finance wrapped up in the holier-than-thou notion of shareholder value creation, that’s as much about egos and power than anything else. The best ones are dramatic. South African gold giant Gold Fields (NYSE: GFI) has served up a cracker. Already one of the biggest gold miners in Australia, it wants to buy the ASX’s biggest gold stock, Northern Star Resources (ASX: NST), combine their respective West Australian mines, mills and developments, and create a new globally relevant miner worth about $120 billion. While it’s big, what makes it interesting is the drama. Northern Star has underperformed, lost a bunch of executives, has a couple of new directors starting this week, a new chief executive coming on next week, and globally renowned Elliott Investment Management on its tail with a 6.2 per cent stake wanting to make a big bucket of money. The Northern Star/Elliott tensions were supposed to have settled down with the senior management changes, but Gold Fields’ offer could set them straight back off again. Bloomberg leaked news of the bid over the weekend, right ahead of a big annual gold shindig in Denver attended by the world’s biggest miners and their investors. Gold Fields and Northern Star both have speaking slots, and you’d think investors will barely ask them about anything else. Northern Star revealed it had since rejected the bid – it didn’t like the valuation or structure – only for Gold Fields to hit back with its show-stopper. It said combining the two could create $US4 billion to $US5 billion ($5.7 billion to $7.1 billion) in value, shared by both Northern Star and Gold Fields shareholders and mostly stemming from their combined West Australian mines and mills that could be re-routed. The first Northern Star knew about the huge synergies claim was when Gold Fields released its Denver conference presentation late on Monday. If it is accurate – and it’s impossible to know that without due diligence – it is a compelling reason to combine the two companies’ West Australian portfolios, if not the whole lot. You could say they were better prepared for the leak. That synergies number is even more compelling when you consider that gold miners fish in a small pool of institutional investors, and their biggest investors are the same passive funds that buy stock for gold-themed ETFs. They tend to be management team agnostic, and just want the most value for whatever assets their companies own. The $U.S.4 billion to $U.S.5 billion number is pretty fuzzy, but it’s too big to ignore. Gold Fields didn’t explicitly say it, but it seems to revolve around the fact the two companies have eight of the top 20 gold mines in Australia, all within a 280-kilometer radius in Western Australia. Gold Fields said 92 per cent of Northern Star’s Australian reserves were within 100 kilometers of the South African’s processing infrastructure. Ore from Gold Fields’ Agnew, for example, could be processed at Northern Star’s Thunderbox. That synergies number is unique – Newmont/Newcrest Mining, the last big Australian mega-deal, didn’t have anything like it. It will linger in investors’ minds, even if they know to think of M&A synergies claims as guilty until proven innocent, and are warned this one’s got no confidential information or due diligence behind it. Northern Star chairman Michael Chaney called the bid opportunistic, while Gold Fields said its interest pre-dated Elliott’s arrival and followed six months of talks. Both can be true. Chaney, advised by Goldman Sachs (NYSE: GS), pretty quickly rejected the offer. But what we now have is a starting price – JPMorgan (NYSE: JPM)-advised Gold Fields offered $27 a share – and a stirred-up investor in Elliott that has been pretty forward about its intentions to see Northern Star sold to create value from the start. Elliott was quick to tell Northern Star to engage. It would be cleaner for Gold Fields if Elliott wasn't on the scene, but it could be helpful that it is. Its pitch is that Northern Star has lost a lot of executives, has grown to a scale where it is dealing with projects and capital decisions that are much bigger than it is used to, and it doesn't have the bandwidth to deal with it. Gold Fields will try to make Northern Star investors doubt their company's ability to turn around operational performance and make the most of a strong gold price. Gold Fields submitted its bid a fortnight ago, giving Northern Star two weeks to address it ahead of the Denver conference. Gold Fields would have offered a mix of shares and cash, leaving Northern Star with one-third of the combined group and Gold Fields investors with the rest. While the Western Australia synergies are the easy bit to understand, Northern Star has concerns about Gold Fields’ South African and Ghana mines and whether investors want the “jurisdictional and operational risks.” Northern Star also wants to give incoming CEO Suresh Vadnagra the chance to start the turnaround and potentially get the share price to $30, to sell to Gold Fields at $40. While Chaney’s the sort of chairman to try to take the heat out of an M&A battle, this one promises to be spicy. It’s another reminder that when big investors like Elliott turn up, action follows – whether courted, warranted or not. Putting Gold Fields and Northern Star together would create the second-biggest gold producer globally based on 2025 production numbers and the largest producer in Australia by far, according to Citi (NYSE: C) analysts. It would be a shame for the ASX to lose Northern Star, an ASX 20 member, so soon after losing Newcrest. Gold Fields said it would seek an Australian listing to do the deal, similar to Newmont/Newcrest. However, some of Northern Star’s stock would be lost to Gold Fields’ more liquid listing in New York.

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9/27/2026

‘A Lot of Value to Be Created’: Elliott Investment on Northern Star

Australian Financial Review (09/27/26) Wembridge, Mark

Elliott Investment Management, which owns 6.24% of Northern Star Resources (ASX: NST), appears to have reached a more cooperative relationship with the gold miner after months of public disagreement. Two directors backed by Elliott, former Anglo American CEO Mark Cutifani and mining executive Peter Rozenauers, have joined Northern Star’s board, while CEO Suresh Vadnagra is due to start in October and chairman Michael Chaney is set to step down in November. Elliott has argued that Northern Star is undervalued and has criticized its operational performance and repeated guidance misses. The hedge fund is pressing the company to improve returns, potentially sell non-core assets and has previously raised the possibility of a broader company sale. Northern Star has also acknowledged receiving takeover approaches but has declined to pursue them. The article compares Elliott’s campaign with its earlier involvement at Suncor Energy (NYSE: SU), where board and leadership changes accompanied efforts to improve operational performance; Suncor CEO Richard Kruger said Elliott became less interventionist after management demonstrated measurable progress. Elliott has also previously campaigned at BHP. Northern Star’s key priorities now include integrating its new Super Pit processing mill and evaluating the potential development of the Hemi gold resource. The company says it remains aligned with Elliott on the objective of improving long-term shareholder returns, while maintaining that management runs the business and the board oversees it.

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9/25/2026

Motorola Solutions CEO Greg Brown Offers Rare Insight Into Two Decades of Transformation on the CEO Signal

The Critical Communications (09/25/26)

Greg Brown, Chairman and Chief Executive Officer of Motorola Solutions (NYSE: MSI), has given a rare long-form interview to The CEO Signal, the leadership series from Semafor presented by PwC and hosted by former U.S Secretary of Commerce Penny Pritzker and Andrew Edgecliffe-Johnson. In the 45-minute conversation, Brown reflects on nearly 19 years at the helm of the company, discussing its reinvention as a public safety and defense technology leader, its acquisition strategy, his relationships with activist and private equity investors, and his vision for the future of public safety. Brown, one of the longest-serving chief executives in the United States, described the separation of Motorola as a matter of necessity rather than courage. On taking office, he found the company losing between 350 and 400 million dollars per quarter, driven entirely by its mobile phone business. "Had we not made the decision to split and exit that business, there would not be an interview today," he said, adding that the company was an estimated 18 months to two years from bankruptcy at the time. He characterized today's Motorola Solutions as a public safety, national defense and enterprise security company, built on what he described as a jewel buried within the former Motorola: the mission-critical systems, devices and software relied upon by police, fire and emergency medical services. Brown identified this as the only part of the business with a genuine competitive moat, and the foundation on which the company has since grown. Acquisitions have been central to that growth. Motorola Solutions has completed more than 60 acquisitions under Brown's leadership, the largest being Silvus Technologies, valued at approximately 4.5 billion dollars and potentially rising to five billion dollars subject to an earn-out. Brown stressed that the acquisition was not an entry into the drone device market, but a move into drone infrastructure through mobile ad hoc networking, noting that many drones deployed in Ukraine are powered by Silvus technology. He confirmed that Motorola Solutions intends to close the acquisition of a counter-drone infrastructure company before the end of the year. Brown explained that acquired businesses such as Silvus are deliberately allowed to operate with a high degree of autonomy, benefiting from Motorola Solutions' balance sheet, purchasing scale and manufacturing infrastructure while retaining their talent, culture and intellectual property. Back-office systems are migrated gradually over approximately 24 months. For major decisions, Brown applies a simple test, asking whether he feels "relief or regret" after the fact. The interview also offers an unusually candid account of the pressures of leadership. Brown described how investors Carl Icahn and ValueAct, and later private equity firm Silver Lake, shaped his approach, encouraging him to think "like an owner, not a manager." He recounted a period when the board, under pressure from ValueAct, instructed him to explore a sale of the company, a process that ultimately found no buyer but led to Silver Lake's investment and a decade-long presence on the board. Brown also revealed that he came close to resigning on more than one occasion, and credited his wife Anna and son Troy with persuading him to stay and fight for his convictions. Looking ahead, Brown outlined how land mobile radio is evolving into multimedia, broadband-enabled systems, alongside AI-assisted translation and transcription in 911 call handling and the growth of Drone as First Responder programs. He anticipated greater deployment of unmanned systems to reduce risk to first responders and military personnel, but drew a clear line on autonomy. "Anytime where you have a life-threatening decision that has to be made in seconds, I don't think a system should independently make that," he said.

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9/25/2026

Charles River Laboratories Targets $300 Million in Savings Through AI Tools, Automation

Boston Business Journal (09/25/26) Baratham-Green, Hannah

Charles River Laboratories (NYSE: CRL) is entering a new era. The Wilmington-based contract research organization has navigated a shareholder whose pressure prompted a strategic review and a number of changes, including a board shakeup, the sale of several businesses and site closures. Then at the start of 2026, longtime CEO Jim Foster announced he would retire after more than 30 years leading the company. Foster is the son of company founder Henry Foster, who started Charles River in 1947 to meet the local need for laboratory animal models. For the first time, Charles River is being led by someone outside the founding family. But new CEO Birgit Girshick is a longtime member of Charles River herself — she has been with the company for nearly half of its existence. Now Charles River executives are laying out a new plan for how the company will move forward and drive profitable growth. One part of that new vision involves modernizing the 79-year-old company. Charles River said on Thursday that it plans to generate over $300 million in cumulative savings from 2027 through 2030. The savings will come from simplifying processes and increasing automation and digital enablement. Company officials said by expanding the use of AI-assisted digital tools, Charles River wants to improve operating efficiency, reduce drug development timelines and boost client satisfaction. Executives also called out areas Charles River where making investments, namely bioanalysis, in vitro testing and related scientific solutions. The company said those investments will help strengthen its scientific portfolio. Finally, Charles River is also prioritizing how it can improve its customers’ experience. The company said it is expanding its Apollo cloud-based platform. Charles River said this platform already helps more than 18,000 client users through its scientific decision-support and e-commerce capabilities. The platform was recently expanded to also support manufacturing solutions’ clients. Charles River said Thursday that “through these initiatives and disciplined capital deployment, the Company intends to reinforce its leadership position in early-stage drug development with comprehensive regulated testing capabilities across the R&D continuum.”

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9/17/2026

Editorial: The SEC’s Big and Welcome Proxy Reform

Wall Street Journal (09/17/26)

The Wall Street Journal editorial board says, "U.S. Securities and Exchange Commission (SEC) Chairman Paul Atkins on Wednesday issued a one-two punch to government pension funds and proxy advisory firms. The agency moved to exit the political business of deciding which shareholders resolutions companies must put up for a vote. Imagine that—a regulator relinquishing power. Mr. Atkins’ proposed reform would return regulatory authority over shareholder resolutions to the states, where it resided before the agency arrogated the power to itself some 80 years ago. His deregulation would empower states to write their own rules regulating shareholder proposals for businesses incorporated within their borders, as Texas has recently sought to do. The 1934 Securities Exchange Act makes it illegal to solicit a proxy “in contravention of such rules and regulations as the Commission may prescribe as necessary or appropriate in the public interest or for the protection of investors.” The law was intended to give the SEC power to regulate disclosures to protect investors, not to play referee. Yet the agency has since invoked the law's broad language to determine which shareholder proposals companies must include on proxy statements. The result: A “mother may I?” process in which companies were effectively required to seek agency permission to exclude proposals that interfere with their day-to-day management, violate state corporate laws or are economically irrelevant. Companies risked government enforcement action if they didn't follow SEC direction. As the SEC's proposed rule this week says, shareholders often use resolutions “to gain leverage in negotiations with company management or to secure private benefits from such negotiations.” The Biden SEC declined company requests to exclude environmental, social and governance (ESG) resolutions, giving progressives more leverage. These activists often hire proxy advisory firms to help them “engage” with—i.e., bully—companies. One half of the U.S. proxy duopoly, Institutional Shareholder Services, advertises that it helps investors “engage with companies that have failed to prevent or address serious social or environmental controversies in violation of established norms and expectations.” Companies often adopt some of these demands to avoid costly proxy and legal fights. Most shareholder proposals are rejected, and the SEC notes that only 11% of those that were ultimately voted on last year received majority shareholder support. But companies must still spend to oppose them and rebuff misinformation by proxy firms. Conservatives have begun to copy the ESG crowd's playbook with resolutions demanding that companies resist liberal pressure and policies. The Heritage Foundation last year sued Airbnb (NASDAQ: ABNB) for not including its proposal calling on the company to consider the legal risks of politicized divestments. Airbnb agreed to put the proposal on this year's ballot, and shareholders rejected it. Mr. Atkins is right to get the SEC out of arbitrating such political fights and devolve regulatory authority to states. Among other business law reforms, Texas last year passed legislation that lets companies incorporated in the state exclude resolutions if proponents don't own at least $1 million, or 3%, of voting shares. Such reforms are one reason Tesla (NASDAQ: TSLA), Coinbase (NASDAQ: COIN), and Dell Technologies (NYSE: DELL) have reincorporated in Texas. With the exception of the Lone Star State, “no State has adopted legislation governing shareholder proposals in more than 80 years,” the SEC says. Maybe now others will do so to compete with Texas for business."

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9/16/2026

Activism Update: Fewer Proxy Contests, More AI-Focused Themes

Skadden (09/16/26)

The first half of 2026 provided no respite for boards from activist demands, as this was the busiest first half on record for shareholder activism in the United States. According to FactSet data, there were 71 new campaigns at U.S.-incorporated companies, narrowly surpassing last year’s first half and well above the five-year average over the same period.1Informed Board Open Book Display Micro- and small-cap companies remain the most common targets, but no company is immune. While companies valued below $2 billion accounted for 62% of U.S. campaigns in H1 2026, mid-caps ($2 billion to $10 billion) accounted for 25% of all U.S. campaigns, and large- and mega-cap companies still accounted for roughly one in eight campaigns. Technology was the most targeted sector by a wide margin during H1 2026, accounting for nearly two-fifths of U.S. campaigns, with consumer/retail second at just over a fifth. Together, the two sectors accounted for close to 60% of all U.S. activism campaigns. While most campaigns remain focused on M&A, capital allocation and portfolio optimization, nearly 30% of U.S. technology campaigns in H1 2026 featured an AI angle, and the theme appeared in roughly one in six U.S. campaigns overall. Most often activists claimed that a company is not moving fast enough to leverage or capture the benefits of AI, such as using AI to unlock cost savings, improve productivity and accelerate growth. At other times, activists argue that a company is not sufficiently communicating its AI-related efforts to investors and the market at large. The number of U.S. contests that went to a shareholder vote in H1 2026 declined sharply from prior years, and nearly all board seats were obtained by activists without a vote. Just four U.S. campaigns reached a vote in H1 2026, less than half the prior-year figure, and activists won just a single seat in those four contests. Still, activists secured some 50 board seats, mostly through negotiated settlements. Activists also obtained other concessions from boards through informal settlements, typically relating to business reviews, share repurchase programs or leadership changes. As we discussed in an April 2026 article, “Should Boards Be Wary of Informal Settlements With Shareholder Activists?” these can provide a cost-effective resolution for both sides, but the downside is that the company does not gain contractual protections. Activists are increasingly launching off-cycle pressure campaigns, leveraging sophisticated multimedia and digital strategies, that are no longer tied to traditional annual meeting timelines. Activists can often obtain commitments from boards that wish to avoid extended public pressure campaigns that can disrupt a company’s business operations, instead of launching full proxy election contests. On July 9, 2026, the U.S. Securities and Exchange Commission (SEC) staff issued interpretive guidance that could materially constrain the ability of certain activists to raise funds to launch activist campaigns. Based on the new guidance, where a special purpose vehicle (SPV) is formed to acquire securities of a specific company and run an activist campaign there, and investors in the SPV are told in advance of both that purpose and the target’s identity, the staff now takes the view that the identity of the investors must be disclosed in any Schedule 13D (reporting more than 5% ownership) the SPV must file with the SEC. Similarly, where the SPV is formed to finance a proxy solicitation to change the board’s composition and investors receive the same advance notice, each investor contributing more than $500 is treated as a “participant” in the solicitation, and information about them must also appear in any proxy statement filed by the activist with respect to the target. This new guidance is likely to impact smaller and mid-sized activist funds that rely heavily on SPVs to build outsized positions separate and apart from their core diversified investment funds. Since many investors who back these vehicles demand anonymity, they may decline future investment opportunities if there is any risk that they might be identified in a public filing, potentially causing a temporary downshift in activity by these smaller activist funds. The proxy advisory landscape is fragmenting as proxy advisory firms have increasingly come under attack by regulators. A December 2025 executive order directed the SEC to review and consider revising or rescinding proxy advisor rules and guidance to assess whether proxy advisory firms should register as investment advisers, and to have the staff examine whether investment advisers that follow proxy advisor recommendations on non-pecuniary factors are acting inconsistently with their fiduciary duties. In addition, in August 2026, the U.S. Department of Justice’s Antitrust Division withdrew a 1987 business review letter that protected proxy advisory firm Institutional Shareholder Services (ISS) from antitrust enforcement, citing antitrust concerns about ISS’ and Glass Lewis’ potential to shape corporate governance policies. Amid this unfriendly regulatory climate, Glass Lewis has announced that it will eliminate its standard benchmark voting recommendations in 2027, moving to recommendations built on client-specific investment philosophies. Three other factors could also contribute to making votes less predictable: The “Big Three” institutional investors have split their stewardship divisions, raising the prospect of split votes within one institution; They have also expanded their pass-through voting programs allowing their underlying investors to direct voting decisions instead of the firms' stewardship teams; JPMorgan (NYSE: JPM) and Wells Fargo (NYSE: WFC) announced they were cutting ties with their proxy advisory firms, preferring instead to make voting decisions with the aid of AI tools. As a result of this potential unpredictability, boards may need to expand their shareholder communications to reach a larger audience, engage earlier and more precisely with significant shareholders and tailor communications to investors' differing priorities.

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9/15/2026

Hoban's Insatiable Appetite: Group Founder Targets Korean Air

Korea Times (09/15/26) Min-hyung, Lee

Kim Sang-yeol, founder and former chairman of Hoban Group, has built the company into one of Korea’s most aggressive investors, with his latest bet on Korean Air (KRX: 003490) bringing Hoban's Hanjin KAL (KRX: 180640) stake nearly level with that of the airline's controlling shareholder. Hoban Group has so far amassed a 20.15% stake in Hanjin KAL, the parent company of Korean Air, putting it just 0.42 percentage point behind Hanjin Group Chairman Cho Won-tae and his related parties, which collectively own 20.57%. That narrow gap puts Kim in a position to challenge the balance of power at Korea's flagship airline — particularly if Korea Development Bank (KDB) decides to sell its 10.58% stake. The state-run bank has yet to decide how to sell its stake in Hanjin KAL. The decision may determine who holds the upper hand in the management rights for the integrated airline that is scheduled to launch on Dec. 17 following Korean Air's takeover of Asiana Airlines (KRX: 020560). Hoban has expanded far beyond its housing construction roots through a string of acquisitions and investments, including Taihan Cable & Solution (KRX: 001440) and Seoul Shinmun Daily. Although Kim stepped down as chairman, his name remains inseparable from Hoban’s aggressive expansion strategy. Hoban started joining the race to acquire the management rights for Hanjin KAL in March 2022 by buying 9.4 million shares, or 13.97%, from KCGI for 564 billion won ($420 million). Hoban has since continued accumulating shares to the current level by injecting around 878.2 billion won. Hoban Group has disclosed that its investment in Hanjin KAL is intended "solely for investment purposes," and remained publicly silent on any plans to officially seek management participation. Given Hoban Group’s continued accumulation of shares and the size of its investment, however, its explanation does not appear entirely convincing. Many market observers believe that seeking management participation may ultimately be part of Hoban’s core strategy. Hoban has not launched a management challenge and did not oppose Cho's reappointment as an inside director at Hanjin KAL's shareholders' meeting in March. But closing the stake gap with the controlling family to less than half a percentage point comes as an apparent management challenge to the current leadership of Korean Air. The state-run bank received its 10.58% stake after injecting 500 billion won into Hanjin KAL in 2020 to support Korean Air's acquisition of Asiana. KDB has no obligation to sell immediately after the two airlines' integration and has said it will consider its exit based on market conditions. But the method of the sale could matter more than the timing. If KDB sells its entire stake to Hoban, the firm’s ownership would jump to 30.73%. That would instantly turn Hoban into a much more formidable force and make it difficult to dismiss the group as merely a financial investor. A fragmented sale would have the opposite effect. Selling the shares in blocks to institutional investors could dilute Hoban’s influence, while giving Cho more time to consolidate his own shareholder base. Cho has powerful allies. Delta Air Lines (NYSE: DAL) owns 14.9%, while LX Pantos owns 3.83%. Funds affiliated with Daishin Asset Management and Eugene Asset Management hold another 9.06% combined. Chances are their holdings can give Cho a substantial cushion in any shareholder contest. Japan Airlines (JAL) (TYO: 9201) has also entered the race. JAL announced a strategic partnership with Korean Air earlier this month and acquired shares in Hanjin KAL, although the amount and purchase price were not revealed. That could prove significant if the ownership battle intensifies. JAL has not been confirmed as a voting ally of Cho, but its arrival gives the Hanjin side another potential strategic partner just as KDB’s exit looms. “Given that Cho’s friendly shares currently far exceed Hoban Group’s stake, the latter is unlikely to significantly affect management control of Hanjin KAL,” an industry official said. “However, the key will be whether Hoban Group moves to acquire additional shares or changes the stated purpose of its investment in Hanjin KAL.” Kim has several options at his disposal. He could buy KDB’s stake, and challenge Cho for a role in joint management. Another possible scenario is that he may negotiate a sale of Hoban’s stake at a premium, even if the company fails to gain management control.

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9/14/2026

Ex-Unilever Boss Takes Swipe at Activist Investors

The Times (London) (09/14/26) Taylor, Guy

Unilever’s (NYSE: UL) former chief executive Paul Polman has hit out at activist investors who push for corporate break-ups, months after the consumer goods giant announced plans to demerge its $44.8 billion food division. The Dutch businessman, who led Unilever from 2009 until 2019, argued that all investors who push for carve-out deals are motivated by short-term profit, adding that these can sometimes amount to a form of “financial manipulation.” “There’s not one activist investor or one shareholder that is shouting to split up because they want to build long-term value,” he said. “They’re trying to create some short-term value for themselves.” His comments will be taken as a thinly veiled slight against Nelson Peltz, the American hedge fund magnate who was a key force behind Unilever’s food deal in March. The billionaire holds a seat on the company’s board and had been pushing for change since his Trian fund first built a stake in 2022. “If you’re in a position of strength, you can handle [the pressure]. If you’re in a position of weakness, you tend to give in. That has been the sad story of many companies in the history of mankind,” Polman, who famously fended off a £115 billion hostile takeover bid from Kraft-Heinz (NASDAQ: KHC) in 2017, told the Times. Unilever’s mega-merger will see its food division — which is behind brands including Marmite, Hellmann’s mayonnaise and Knorr stock cubes — spun out and combined with McCormick (NYSE: MKC), the U.S. spice and sauce maker. Unilever has described the deal as a “growth-led separation.” However, the shares initially fell sharply and it has prompted a backlash from certain shareholders who will be denied a vote. “You can have any PR department spin anything you want. What really counts is how you create real value and not give in to the financial manipulation that unfortunately has crept into too many parts of the financial market — it has not worked for most companies,” Polman said, adding: “Very few that we can celebrate as successes were behind a strategy of share buybacks, or special dividends or splitting companies.” This year Terry Smith, one of Britain’s best-known stockpickers, ditched his entire holding in Unilever, accusing the FTSE 100 group of abandoning a “promised operational focus in favor of activist-driven break-ups.” He later claimed to have been misled over the deal, adding that it had “all the hallmarks of Nelson Peltz.” Fernando Fernández, the current Unilever chief executive, has defended the strategy, arguing that the company had been an “inconsistent” performer in the past and that in the long run it would “create a lot of value.” He is spearheading the company’s pivot to home, personal care and beauty, believing that this side of the business, which houses brands such as Dove soap and Axe deodorant, has outperformed the market in recent years. While Polman refrained from directly criticizing the McCormick transaction, he argued that the act of spinning off was not in and of itself value creation. “It only creates value if it ends up with people that know how to better manage these businesses, or if the remaining business you have is better managed. I think looking at the Unilever share price and looking at the reactions from the market behind these spin-offs, that question is not fully answered. Perhaps history will tell us.” Polman, a veteran of the consumer goods industry, oversaw a 150% rise in Unilever’s share price during his decade in charge. His departure came just months after an investor rebellion forced the company to abandon plans to consolidate its headquarters in Rotterdam over London. He previously described his fight against Kraft-Heinz as a “near-death experience.” Polman, who worked at both Procter & Gamble (NYSE: PG) and Nestlé (OTCMKTS: NSRGY) before Unilever, has long been regarded as an advocate of sustainability and longer-term thinking in business. He is co-founder and chair emeritus of Imagine, a group of business leaders focused on climate change and inequality. Unilever and Trian declined to comment.

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9/11/2026

South African Boards Court Investors as Pay Votes Become Binding

Bloomberg (09/11/26) Kew, Janice

South African companies are increasing engagement with shareholders ahead of annual general meetings after changes to the Companies Act gave investors greater power over executive pay. The amendments, effective in May, replaced advisory remuneration votes at listed companies with binding shareholder-approval requirements. Public and state-owned companies must now secure ordinary-resolution approval for their remuneration policies, while remuneration committee members face re-election consequences if shareholders reject annual remuneration reports. Mr Price Group (JSE: MRP) provided an early test, engaging investors representing more than 67% of its shares before its September AGM. Although both remuneration resolutions passed, more than a third of votes opposed its pay policy, up from about 26% the previous year. Shareholder concerns focused on performance-measure weighting and disclosure of strategic targets for short-term incentives. The new rules are prompting companies to begin earlier, more structured discussions with investors, although some engagement remains defensive, involving additional meetings and disclosures without major changes to incentive structures. Companies must also provide greater disclosure about the pay gap between their highest- and lowest-paid employees. The changes could lead to adjustments in compensation structures when boards face sustained shareholder opposition. However, investor engagement alone may not guarantee agreement over executive pay. The binding votes increase the consequences for boards, particularly because a second consecutive rejection of a remuneration report bars eligible non-executive remuneration committee members from serving on the committee for two years.

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9/8/2026

How the Passive Boom Gave ASX Loudmouths a Megaphone

Australian Financial Review (09/08/26) Macdonald, Anthony

The irony in the decline in active Australian equities is that the fewer voices there are out there, the louder they get. A decade ago, an active fund manager that spoke for 2% or 3% of a company would not be a top-five investor and would struggle to be in the top 10. They were irrelevant in important shareholder votes. Now, 2% or 3% buys you a seat at the table. It’s a front-row seat for the 2% or 3% that’s willing to talk about it – like Perpetual was at Origin Energy (ASX: ORG) three years ago, the non-deal that still haunts Australian M&A. Share registers are now so thin that even ASX 50 companies struggle to have more than a handful of chunky active investors, which rockets anyone with a half-decent stake up the list. If it’s a half-decent stake and the individual fund manager works (or worked for) a shop that helped recapitalize a company during the pandemic or financial crisis, the view seems to be worth even more. It has led to a material change in Australian M&A, according to Goldman Sachs (NYSE: GS) head of M&A Marissa Freund, a top managing director in the investment bank’s Sydney office. It’s because of the proliferation of passive and quant funds – from about one-quarter of a typical ASX-listed large cap to one-third in the past decade – and retail and big super’s appetite for ETFs and/or benchmark-hugging. “The number of active voices who have strong views around fundamental value are diminished,” Freund said at the M&A Conference in Sydney on Tuesday. “What that means is fewer voices, which means fewer people have outsized voices, which sometimes they want to use, sometimes they’re not willing to use, but it’s changed the influence they have on our companies.” Freund is talking about M&A and M&A votes – cases such as Origin – but we’d say it equally applies to investor consultation on remuneration structures, capital allocation and personnel changes. Her colleagues in equity capital markets would definitely see it when it comes time to raise capital, which has opened the door for active risk-takers such as Regal Funds and the big American pod shops to dominate underwriting syndicates. There’s a big business in dealing with the investor, or just plain active shareholders Freund is talking about – dealing with these shareholders is one of the few new products investment banks have been able to sell in the past decade. Sometimes it is out-and-proud investors like Northern Star’s mates Elliott Management, while other times it is bread-and-butter investors like Perpetual. The big lesson from Origin is that no active investor is irrelevant. Yes, AustralianSuper had the big stake that blocked the deal, but Perpetual's willingness to stand up was meaningful – and certainly not “irrelevant” as bankers were trying to say at the time. Freund says boards need to be more willing to engage with activists earlier – and address their concerns. “We're naturally very conservative as a market,” she says. “But maybe we need to be willing to talk before everything is buttoned down and explain why things make sense.” It's a good example of how the rise of passive and quant-like investing is changing power in Australian capital markets, and sometimes in unexpected ways. Another is sell-side analyst earnings estimates – the sell side is much smaller and more junior than it was a decade ago, and yet their numbers are piling straight into quant models and arguably moving stock prices more than ever.

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