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

Sachem Head Wants Rightmove to Consider Sale, Talk With Potential Buyers, Sources Say
MarineMax Shareholders Approve Merger With Safe Harbor Marinas Affiliate
Wendy's Rejected a $1.4 Billion Takeover Offer as its Stock Rose 37% in 11 Trading Days
Ethan Allen Shareholders Hand Board Control to Doug Bergeron
ICGN Urges South Korea to Revise Mandatory Tender Offer Bill
Teton Capital Takes Aim at Dong-A Pharmaceutical, Presses for Kang Jung-seok's Board Seat and 50 Billion Won in Shareholder Returns
ValueAct Issues Open Letter to Takara Holdings Shareholders Explaining Request for an EGM
Former ISS Executive Guerra and Partners Launch Niscaya Governance
Flashlight Capital Partners Sends Second Letter to South Korea's Orion, Demands Disclosure of Basis for 20.5 Billion Won Paid to Owner Couple
Vanguard Expands Proxy Vote Plan to Cover $8.2 Trillion in Funds
Whitbread Shareholders Reject Activist Investor’s Push for Board Seat
PepsiCo to Cut Some Jobs in North America
Toms Capital Management and Kimmeridge Energy Management Renew Calls for Devon Energy to Sell Itself
Devon Shareholders Ramp Up Pressure to Sell While CEO Calls It a Distraction
Ackman Says Howard Hughes Has Offers for Some Real Estate Assets
Vail Resorts Facing a Proxy Fight Over Its Board, Business Strategy
Arkhouse Pushes Diller’s People Inc. to Pursue Buyback, HQ Sale
Wendy’s Rejects Buyout Bid From Nelson Peltz and Adopts ‘Poison Pill’ Plan
Tripadvisor Announces Departure of CEO and CFO
Korea Tightens Corporate Governance Disclosure Rules to Strengthen Shareholder Protections
Turton Capital Issues Ultimatum to South Korea's Golfzon Holdings: Accept County Sale, Return Approximately $186 Million to Shareholders
Gold Fields Puts Question Mark Over Northern Star Bid
Ethan Allen Shareholders Hand Board Control to Investor Doug Bergeron
South Korea's Life Asset Management Presses Samsung Electronics Over Delayed $55.9 Billion Shareholder Return
Smith & Nephew Open to Deal for its Orthopaedics Business
Activist investor Calls on GungHo to File Lawsuit Against Former CEO
Wishbone Management LP Issues Letter to Avnet, Inc. Shareholders Announcing Intention to Vote Against Two Directors at AGM
Fiserv Cuts 3,000 Employees and Contractor Jobs Under New CEO
Icahn Settlement Ends Legal Saga of Illumina’s Failed Grail Deal
Japan Courier Service Yamato’s Shares Surge on Farallon Stake
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
South Korean Corporate Reforms Hit Rough Patch as Samsung Digs in
Third Point Turns Cautious
Elliott Warns of FOGO: Fear of Getting Obliterated in the Market
Approval Rate of Activist Shareholder Proposals Is Falling in Japan and South Korea
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

11/13/2026

Sachem Head Wants Rightmove to Consider Sale, Talk With Potential Buyers, Sources Say

Reuters (11/13/26) Crowley, Amy-Jo; Herbst-Bayliss, Svea

Sachem Head is pressing UK online property listing company Rightmove (RMV.L) to consider a sale and talk with interested buyers, four people familiar with the matter said, fanning speculation of a possible takeover two years after the company's board rejected a bidder. New York-based Sachem Head, the $7 billion hedge fund founded by Scott Ferguson in 2013, built a stake in Rightmove over the summer and now owns a roughly 9% stake, one of the people said. That would make it the company's largest shareholder, according to LSEG data. Rightmove's shares have dropped some 36% from their peak in August 2025 even as London's FTSE 100 index has gained 18% during that time, giving investors a possible reason to press for a sale. Sachem Head has engaged with Rightmove's board, said two of the people, who spoke on condition of anonymity because the talks are private. A representative for Sachem Head declined to comment and Rightmove has not responded to a request for comment. Sachem Head, one of the industry's most successful investors, tends to work with companies out of the limelight and its pressure on Rightmove to consider a sale has not been reported. Previously Sachem Head has been active in pushing for sales at certain companies and Ferguson held a board seat at Delivery Hero which agreed to be acquired by Uber (UBER.N) this year. The U.S. investor believes there are ways for Rightmove to boost its share price, two of the people said. Sachem Head believes that Rightmove management could increase shareholder returns by using its under-leveraged balance sheet, the people said. Most importantly, Sachem Head is pressing Rightmove hard to review the benefits of a sale and re-engage with any interested acquirers, they added. At Rightmove, overtures toward a possible deal failed when the board rejected Australian company REA's sweetened $8.29 billion offer in 2024.

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11/12/2026

MarineMax Shareholders Approve Merger With Safe Harbor Marinas Affiliate

Investing.com (11/12/26)

MarineMax, Inc. (NYSE: HZO) shareholders voted Wednesday to approve the company’s proposed merger with an affiliate of Safe Harbor Marinas, LLC, a portfolio company of Blackstone Infrastructure Partners L.P., according to a statement based on a U.S. Securities and Exchange Commission (SEC) filing. At a special meeting held Wednesday, MarineMax shareholders considered three proposals related to the merger agreement dated August 9, 2026. The agreement calls for Intrepid Holdco, Inc., an indirect wholly owned subsidiary of SHM Holdco, LLC, to merge with MarineMax, with MarineMax continuing as the surviving corporation and becoming an indirect wholly owned subsidiary of SHM Holdco. Of the 22,086,735 shares of MarineMax common stock outstanding and entitled to vote as of the September 23, 2026 record date, holders of approximately 73.88% were present or represented by proxy at the meeting, constituting a quorum. The key proposal to adopt and approve the merger agreement received 16,266,303 votes in favor, 18,751 votes against, and 33,317 abstentions. The advisory proposal to approve compensation that may be paid to named executive officers in connection with the merger received 13,033,039 votes in favor, 2,990,051 votes against, and 295,281 abstentions. The proposal to adjourn the meeting was not submitted, as there were sufficient votes to approve the merger. The merger, once completed, will result in MarineMax becoming a subsidiary of SHM Holdco, LLC. Details regarding the transaction and voting results are based on the company's statement released through the SEC filing.

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11/12/2026

Wendy's Rejected a $1.4 Billion Takeover Offer as its Stock Rose 37% in 11 Trading Days

Quartz (11/12/26) Tolomia, Cris

Wendy's (NASDAQ: WEN) rejected a $1.4 billion takeover offer from an investor group led by Nelson Peltz's Trian Fund Management on Nov. 5, according to CNBC. On Oct. 28, the group proposed paying $7.35 in cash for each share, a bid that would take the burger chain private. Wendy's stock has gained 37% in the past 11 sessions and now sits near $8. It did not post a losing session in that stretch, according to MarketWatch. The gain has nearly cleared the stock's decline for this year, but the shares still trade far under the highs north of $20 they hit in the early part of the 2020s. Besides Trian, the investor group includes BlueFive Capital, Sixth Street Partners and Flynn Group, one of Wendy's largest franchisees, according to CNBC. Wendy's board formed a committee of independent directors in February to assess any bid from Trian after the firm made a regulatory filing, according to CNBC. The committee concluded that the offer "substantially undervalues" Wendy's while overlooking the benefits the chain could see from its turnaround strategy, according to CNBC. "Our confidence rests firmly in CEO Bob Wright's proven track record of seasoned industry leadership, including restaurant business turnarounds," said Art Winkleblack, who chairs Wendy's board and sits on its independent committee, in a statement, according to CNBC. Trian declined to comment on the decision. As protection against an unwanted hostile bid, Wendy's put a poison pill, formally a shareholder rights plan, in place on Nov. 4 that runs for one year, according to CNBC. The Trian-led group rebuffed a proposal from Wendy's to sign a standstill agreement freezing further stock buying, and that refusal contributed to the decision to adopt the pill. Wendy's stock dipped by under 1% during early trading on Nov. 5. The stock, which has shed roughly 60% of its value across three years, got a lift from the takeover offer, according to CNBC. Wendy's named Peltz chairman emeritus in 2024 after he spent 17 years on its board, according to CNBC. Trian executive Peter May and Peltz's son, Bradley Peltz, remain on the board.

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11/11/2026

Ethan Allen Shareholders Hand Board Control to Doug Bergeron

Wall Street Journal (11/11/26) Schisgall, Elias

Shareholders of Ethan Allen (NYSE: ETD) have seemingly voted to elect Doug Bergeron and two of his other nominees to the company’s board of directors, handing the investor a victory in his proxy battle for control of the firm. The interior-design company said Wednesday that preliminary results from a shareholder meeting appear to show that Bergeron had won a seat, along with two other nominees proposed by his firm, DGB Investment: Kristine Miller and Stephen Oblak. Shareholders also voted for two of the company’s five nominees for the board: Maria Eugenia Casar and Tara Stacom. The results, if finalized, suggest DGB will have a 3-2 majority on the board. Shares were climbing 4.8% to $21.23 in afternoon trading. Bergeron said the new board will focus on strengthening corporate governance, returning to profitable growth, and selecting a successor to Chief Executive Officer Farooq Kathwari. “Throughout this campaign, we asked shareholders to give us the mandate to restore accountability, revitalize the business and return Ethan Allen to profitable growth,” Bergeron said. “Based on the preliminary results, shareholders have delivered that mandate.” Ethan Allen launched a search for a successor to Kathwari in September, targeting a named successor by June 30, 2027. Bergeron, who controls a roughly 5.2% stake in the company, previously said he had launched his own search for a new CEO. Prior to the shareholder vote, the company had said Kathwari would remain a nonexecutive member of the board of directors after he leaves the CEO position on June 30, and that he would step down from the board at the 2027 shareholder meeting.

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11/11/2026

ICGN Urges South Korea to Revise Mandatory Tender Offer Bill

Business Korea (11/11/26) Seon-young, Park

A global investor organization whose member institutions oversee more than $100 trillion in assets has called for a comprehensive review of the mandatory tender offer system being advanced in South Korea’s National Assembly. The move reflects concerns that the current bill, which gives controlling shareholders preferential treatment, may not adequately protect the rights and interests of minority shareholders. The International Corporate Governance Network (ICGN) warned in an open letter sent to the National Assembly’s Political Affairs Committee on Nov. 9 that the proposed mandatory tender offer system based on a “50% plus one share” threshold could result in unequal treatment of shareholders. The contents of the letter became public on Nov. 10. ICGN is a global corporate governance organization with institutional investor members in more than 40 countries. Its member institutions oversee more than $100 trillion in assets, and its principles are influential in how global investors exercise voting rights and assess companies. The amendment to the Financial Investment Services and Capital Markets Act, which passed the National Assembly's Political Affairs Committee, is designed to require an acquirer to first purchase the controlling shareholder's stake and then buy additional shares from minority shareholders only in the amount needed to reach “50% plus one share” of the company. The approach was proposed as a compromise to reduce the financial burden on acquirers, but it has a key drawback: when the controlling shareholder already holds a stake close to a majority, minority shareholders may have little opportunity to sell their shares. Concerns that requiring acquirers to purchase all remaining shares would significantly increase acquisition costs and potentially dampen the M&A market were behind the compromise. Financial authorities have also said they will proceed with the 50%-plus-one-share approach for now, leaving the question of whether to require a full tender offer for the remaining shares for further discussion. ICGN argued that allowing an acquirer to purchase the controlling shareholder's entire stake first runs counter to the principle of equal treatment of shareholders. For example, if an acquirer first buys a 40% stake held by a controlling shareholder, the subsequent tender offer to minority shareholders would cover only about 10% plus one share of the company. Even if all minority shareholders wanted to sell, each would be able to tender only about one-sixth of their holdings. Another concern is that if a controlling shareholder already owns more than 50% of a company, the acquirer could meet the 50%-plus-one-share requirement without making any additional tender offer to minority shareholders. The exclusive allocation of the control premium is another central issue. While the controlling shareholder can sell its entire stake at a premium reflecting the transfer of management control, minority shareholders may receive that price for only a limited portion of their holdings or may not have the opportunity to sell at all. Industry analysts warn that this could weaken the value and liquidity of shares held by minority investors. ICGN strongly recommended requiring acquirers to make a tender offer for all remaining shares when control of a company changes hands, in line with practices in major markets such as the European Union (EU) and the United Kingdom. EU rules generally require an offer for all remaining shares when control is acquired, while the U.K. Takeover Code generally requires a full offer to all shareholders when a person acquires more than 30% of a company's voting rights. If the 50%-plus-one-share compromise is retained, ICGN proposed applying the same pro rata allocation rules to controlling and minority shareholders. Under a pro rata allocation system, the controlling shareholder's stake is not purchased separately in advance. Instead, all shareholders participate in the tender offer at the same price and on the same terms. If the number of shares tendered exceeds the target amount, the acquirer purchases shares from each shareholder in proportion to their holdings, preventing the controlling shareholder from receiving priority. For example, if an acquirer seeks to purchase 50% of a company and the controlling shareholder owns 40%, with all shareholders tendering their shares, approximately 20% of the company's shares would be purchased from the controlling shareholder and 30% from minority shareholders on the same terms. The proposal is consistent with a call for a pro rata tender offer made by 18 domestic asset management companies in September. ICGN also called for measures to improve transparency. It said acquirers should clearly disclose the terms of an offer, how the price is determined, details of any share purchases made before the tender offer and the criteria for allocating shares. It also stressed the need for safeguards against transactions designed to circumvent mandatory tender offer rules. The legislative process has also been contentious. Most of the amendments to the Financial Investment Services and Capital Markets Act originally proposed by eight lawmakers called for mandatory purchases of all remaining shares. However, the ruling and opposition parties agreed on Sept. 15 to adopt the 50%-plus-one-share approach. The amendment passed the Political Affairs Committee on Sept. 17 and the Legislation and Judiciary Committee on Sept. 28, but its scheduled submission to the National Assembly plenary session on Oct. 1 was postponed amid opposition. The latest intervention by global investors follows a similar letter of concern from the Asian Corporate Governance Association (ACGA). In a letter sent to the National Assembly and the government on Nov. 7, ACGA recommended requiring acquirers who obtain more than 30% of voting rights and become new controlling shareholders to make a tender offer for all remaining shares. It also called for the price offered to minority shareholders to be at least equal to the price paid to the existing controlling shareholder. ACGA has more than 100 institutional members with combined assets under management exceeding $40 trillion. ICGN added that the National Assembly should engage in sufficient consultation with domestic and international institutional investors and listen to market participants before proceeding with a plenary vote. The bill's submission to the plenary session remains on hold following public opposition.

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11/11/2026

Teton Capital Takes Aim at Dong-A Pharmaceutical, Presses for Kang Jung-seok's Board Seat and 50 Billion Won in Shareholder Returns

The Financial News (11/11/26)

U.S.-based Teton Capital is pressing Dong-A Pharmaceutical (KS: 000640) (formerly Dong-A Socio Holdings) to overhaul its governance. It is calling for Chairman Kang Jung-seok to be appointed a registered director and for annual shareholder returns of 50 billion won. The move has drawn attention because Teton is challenging not only the level of dividends but also funding for affiliates and the board's oversight role. According to investment banking (IB) industry sources on the 11th, Teton Capital presented Dong-A Pharmaceutical's board with five proposed improvements to governance and capital allocation and requested a written response by December 4. It wants the company to implement the proposals by its regular shareholders' meeting in March next year. The central issue is Chairman Kang's management accountability. Kang personally holds a 29.3% stake, rising to 42.3% when shares held by related parties and those covered by agreements to exercise voting rights jointly are included. However, as an unregistered executive, he is not subject to the shareholder election process or the compensation limits for registered directors. Last year, Kang received 2.3 billion won in compensation, exceeding the 1.304 billion won combined pay of the six registered directors. Teton called for Kang to be nominated as a registered director and put to a shareholder vote, or, if he remains an unregistered executive, for his compensation to be subject to shareholder approval. Funding for affiliates is also at issue. As of August this year, Dong-A Pharmaceutical had provided 434.5 billion won in payment guarantees for affiliates, of which 243 billion won was related to BTGen. BTGen recorded cumulative net losses of 133 billion won from 2015 through last year. Kang is reportedly a personal holder of a 19.6% stake in BTGen. Teton called for additional funding and payment guarantees for BTGen to be suspended until an independent review is completed. It also questioned the board's independence, noting that all 27 capital allocation proposals considered by the board from 2023 through August this year passed without opposition. The efficiency of capital allocation has also come under scrutiny. From 2017 through last year, the consumer health business paid 339 billion won in dividends to the holding company. Over the same period, the holding company paid out just 78.2 billion won in dividends to shareholders. By contrast, substantial funds were invested in BTGen and biosimilar development, among other areas. Teton called for new investments and payment guarantees to be assessed against the cost of capital, and for at least 50 billion won to be returned to shareholders annually if there are no suitable investment opportunities. It also proposed appointing an outside director with experience in overseas consumer goods businesses and linking executive compensation to shareholder returns. Teton currently estimates Dong-A Pharmaceutical's fair value at 261,200 won per share, about three times the closing price of 86,200 won on the 6th. It argues that high-margin businesses centered on Bacchus and quality assets, including a 29.2% stake in ST Pharm, are not properly reflected in the share price. In a response on the 6th, Dong-A Pharmaceutical said it was focused on strengthening business competitiveness and stabilizing its management system after the merger, and would develop the relevant systems in stages. Teton, however, said the response contained no specific commitments to act and began publicly engaging with shareholders. Teton Capital CEO Ryan Albert said, “There is no need to wait any longer because of the merger,” adding, “Now that profits from the consumer health business can be returned to shareholders without going through dividends from subsidiaries, shareholder returns have actually become easier.” Meanwhile, IB industry observers say the central issue in this shareholder engagement is the decision-making structure for capital allocation, rather than the size of dividends. An IB industry source added, “The issue is what criteria the company uses to allocate the cash it earns to its affiliates, and how independently the board made its decisions in that process,” adding, “There is a possibility that disputes among shareholders over director appointments and shareholder return policies will intensify at next year's AGM.”

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11/10/2026

Former ISS Executive Guerra and Partners Launch Niscaya Governance

Reuters (11/10/26) Herbst-Bayliss, Svea

A group of corporate governance experts who have weighed in on some of America's most contested mergers and boardroom fights said they are launching a firm that will guide companies on how to engage with investors on critical shareholder votes. Cristiano Guerra, a former head of special situations research at proxy advisory firm Institutional Shareholder Services, is teaming up with four other industry veterans to run Niscaya Governance, the group said in an interview. His partners are Juan Bonifacino, who worked as a banker defending companies engaged by investors and is an ISS alumnus; Kim Castellino, who led ISS' U.S. research team; Effie Veres, a former senior equity analyst at hedge fund Citadel; and Bradley Vitou, who held activism defense roles at Ernst & Young and FTI Consulting. All partners previously worked at Strategic Governance Advisors (SGA), a division of strategic communications firm FGS Global. The team, which advised companies including media giant Warner Bros (SKYD.N) and athletic apparel retailer Lululemon (LULU.O), is beginning work at the start of what some analysts are forecasting will be a contentious corporate annual meeting season and one of the busiest deal-making environments in years. Companies are increasingly turning to advisers like Niscaya to prepare management to communicate better with shareholders and decode how proxy advisors ISS and Glass Lewis may recommend they vote on hot-button issues like proposed mergers, who sits on boards and executive pay. "We prepare companies to engage effectively with the proxy advisors and the investors who are casting these consequential votes," Bonifacino told Reuters. "We help our clients cut through the noise and focus on what will truly resonate." The firm's partners will work mainly from New York, Washington and San Francisco, and Niscaya joins a number of advisory firms including PJT Camberview and Jasper Street. Since the partners began working together, they have advised dozens of prominent companies, drawing on their expertise at ISS, managing to retain board seats for many challenged directors and to help get contested mergers approved, lawyers and bankers said. "The rules and dynamics of proxy solicitations are evolving rapidly and this team has a truly unique perspective that can be of great value to public companies facing or looking to avoid contested shareholder votes," said Sebastian Alsheimer, head of shareholder engagement and activism defense at law firm Cleary Gottlieb Steen & Hamilton. Bloomberg ranked SGA, where the partners previously worked, as the No. 1 strategic activism defense adviser to companies with more than $1 billion in market capitalization. The five partners left SGA in October. Chris Cernich, who preceded Guerra as ISS' head of special situations research and co-founded SGA a decade ago, retired in August.

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11/10/2026

Flashlight Capital Partners Sends Second Letter to South Korea's Orion, Demands Disclosure of Basis for 20.5 Billion Won Paid to Owner Couple

BigGo Finance (11/10/26)

Flashlight Capital Partners (FCP) is escalating its campaign against South Korea's Orion (KRX: 271560). On the 11th, FCP sent a second public letter to Orion's board, demanding the company provide the basis for calculating the large compensation paid to Chairman Dam Chul-gon and Vice Chairman Lee Hwa-kyung, a married couple who are unregistered executives, and set a response deadline of the 20th. The central issue in the second letter is the compensation of the controlling shareholder family, who do not sit on the board. According to Orion's business report, the couple received a combined 20.5 billion won (approximately $15.3 million) over the four years from 2022 to 2025. FCP pointed out that this amount exceeds the total compensation paid to all registered directors in each of those years. The fund argued there is a fairness problem: registered directors sit on the board, participate in management decisions and bear legal responsibility, while unregistered executives carry relatively less legal burden. FCP also took issue with the fact that the payments are made separately from the director compensation limit approved at the shareholders' meeting. In its first letter on the 19th of last month, FCP delivered five demands to Orion: appoint the controlling shareholder family as registered directors or have them manage the company without pay; link management compensation to the share price; disclose plans for using surplus cash and expand shareholder returns; halt the acquisition of JoongAng Ilbo; and consider entering the pet food business. Orion denied on the 22nd of last month that it was participating in the JoongAng Ilbo acquisition, and in a reply on the 6th of this month it rejected all the remaining demands. In particular, FCP directly rebutted Orion's rejection of linking management compensation to the share price on the grounds that it "could encourage moral hazard." Stock-linked compensation is generally regarded as a mechanism to prevent management moral hazard, the fund argued — and the side refusing it is the problem. The promotion process has also come under scrutiny. FCP noted that Vice President Dam Seo-won joined as a senior manager in July 2021, was promoted to managing director in January 2023 and rose to vice president in January this year. The period from joining to promotion to vice president is about four and a half years. By contrast, according to Orion's business report, it takes an average of 24 years for an ordinary employee to become an executive, and the average age at promotion to managing director is 51.5. Vice President Dam reached managing director at 33, just one year and six months after joining. FCP demanded both the details of the promotion and the compensation data paid during that period. FCP also requested access to and copies of board minutes and opened an anonymous tip-off channel on its official website, raising the pressure. Lee Sang-hyun, CEO of FCP, said of Vice President Dam's promotion: "I question whether they have considered the sense of deprivation other employees would feel," adding, "I hope they will disclose the board minutes and related materials." Orion is South Korea's leading confectionery company with a 22% share of the domestic market. It is classified as a leading K-food stock, generating more than 60% of its revenue overseas, led by its flagship Choco Pie. Yet its enterprise value relative to the cash the company generates shows a wide gap with global peers. Orion holds more than 2 trillion won (approximately $1.5 billion) in net cash and financial assets, yet its dividend yield stands at just 2.8%. In its first letter, FCP argued that the company is undervalued relative to its overseas performance and called for governance improvements and expanded shareholder returns. In South Korea's stock market, there is a growing list of companies that have actually expanded shareholder returns after investors demanded better capital allocation. JB Financial (KRX: 175330), in which Align Partners is a major shareholder, presented a plan to raise its total shareholder return ratio from 32.4% in 2024 to 45% in 2026 and 50% over the long term, while continuing share buybacks and cancellations. KT&G (KRX: 033780) canceled all of its roughly 1.8 trillion won (approximately $1.3 billion) in treasury shares in April this year and decided in September on an additional 360 billion won (approximately $269.1 million) buyback and cancellation. The case is expected to be a test of whether Orion's governance and capital allocation policies could escalate into a proxy fight at a future shareholders' meeting. Whether FCP's requested board minutes are disclosed and how the owner family's compensation is explained are emerging as variables that will determine the direction of the campaign. The key questions are what stance Orion will take on the second letter and which side domestic and foreign institutional investors will back.

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11/9/2026

Vanguard Expands Proxy Vote Plan to Cover $8.2 Trillion in Funds

Bloomberg (11/09/26) Marsh, Alastair

Vanguard Group Inc. is expanding a program it says is designed to better reflect individual investor preferences at shareholder meetings. The move means that investors in all Vanguard’s U.S. equity funds, representing $8.2 trillion in assets, will be able to choose the voting strategy for their holdings, the Pennsylvania-based firm said in a statement on Monday. The changes, which encompass the world’s largest mutual fund — the Vanguard Morningstar Total Stock Market Index Fund — take effect next year. With its Investor Choice program, Vanguard is part of a growing shift among major U.S. asset managers including BlackRock Inc. (NYSE: BLK) and State Street Corp. (NYSE: STT). The firms say such proxy voting programs offer investors greater choice while reflecting a diversity of client opinions. The rise of so-called pass-through voting has coincided with greater political scrutiny in the United States of the extent to which money managers appear to support proposals tied to environmental, social or governance (ESG) goals. The Investor Choice program can help allay any potential concerns about an asset manager’s voting biases, John Galloway, global head of investor engagement at Vanguard, said in an interview, noting that the firm also engages with policymakers. “We have over 50 million individual investors in the United States, and tens of millions more internationally; those individuals have a wide range of perspectives,” Galloway said. “And actually what Investor Choice program participation is showing us is we were right: it's kind of like a normal distribution, they're across the spectrum.” Clients signing up to the program can select a proxy voting policy that's aligned with their preferences, such as voting with management or prioritizing ESG. That then determines how their proportion of the fund votes at public company shareholder meetings on decisions spanning board posts, executive pay and core ESG themes. However, the pass-through system doesn't typically allow an individual investor to choose how their shares are allocated in voting for every individual ballot. Vanguard has offered its clients access to Investor Choice since 2023. With the latest update, the amount of assets encompassed by the program has doubled.

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11/9/2026

Whitbread Shareholders Reject Activist Investor’s Push for Board Seat

City AM (11/09/26) Armstrong, Felix

Whitbread (LON: WTB), the owner of Premier Inn, has defeated Corvex Asset Management’s attempt to secure a board seat for director James Gemmel. More than 83% of votes at Monday’s general meeting opposed the appointment, giving the hospitality group a decisive victory. Corvex had criticized Whitbread’s capital allocation, particularly its £1.1 billion expansion in Germany, and demanded a comprehensive review of its spending strategy. The company rejected the proposal, arguing that its existing turnaround plans had only recently been developed. Whitbread plans to return £2 billion to investors through a strategy that includes selling its standalone restaurant chains, Beefeater and Brewers Fayre, cutting nearly 4,000 jobs, and raising £1.5 billion by selling the freehold rights to additional hotels. The measures partly respond to unexpectedly higher business rates affecting hospitality companies. Whitbread operates approximately 850 Premier Inn hotels across the UK. Chair Christine Hodgson thanked shareholders for supporting the board and said the company would continue implementing its five-year plan, targeting stronger margins, cash flow, and shareholder returns. Whitbread shares fell 1.9% to 2,774 pence following the vote, although they have risen approximately 19% over six months. Corvex managing partner Keith Meister argued that Whitbread’s structural complexity and capital allocation had produced persistently negative returns over one-, three-, five-, and ten-year periods.

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11/6/2026

Toms Capital Management and Kimmeridge Energy Management Renew Calls for Devon Energy to Sell Itself

Seeking Alpha (11/06/26) Surran, Carl

Devon Energy (NYSE: DVN) edged higher in Friday's trading after reporting better than expected Q3 adjusted earnings, and two investors renewed calls for the company to sell itself. Q3 net profit rose to $1.01 billion, or $0.88/share, from $687 million, or $1.09/share, revenue jumped 58% Y/Y to $6.86 billion, and production nearly doubled to 1.66 million boe/day from the year-earlier quarter, boosted by the Coterra Energy acquisition. Devon said it completed the strategic review of its assets, which was launched following investor pressure to streamline its portfolio, and it now plans to focus on Permian operations while retaining its Anadarko, Marcellus, and Rockies assets. The plan suggests "additional divestitures are unlikely to be imminent and would instead be opportunistic," Siebert Williams Shank analyst Gabriele Sorbara said. "Along with the soft third-quarter oil production and fourth-quarter guidance, this could put some pressure on the stock." Toms Capital Management said it is "profoundly disappointed that Devon has concluded its strategic review and determined that not selling additional assets represents the best path forward." "We are confident that interested parties exist for the entire company who would be willing to pay a substantial premium, and we expect the board to follow through on its commitment to engage with them," Toms Capital said. Separately, Kimmeridge Energy Management said that retaining Anadarko, Marcellus, and Rockies assets dilutes the strategic focus of the company. "Calling these assets 'complementary' does not make them strategic, it simply underscores the board's unwillingness to make the difficult decisions necessary to unlock shareholder value," Kimmeridge managing partner Mark Viviano told Bloomberg. "The Devon board has forfeited any credibility to pursue yet another standalone strategy, and a sale of the entire company should be pursued."

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11/6/2026

Devon Shareholders Ramp Up Pressure to Sell While CEO Calls It a Distraction

Bloomberg (11/06/26) Wethe, David

Devon Energy (NYSE: DVN) faces renewed pressure from Toms Capital Management and Kimmeridge Energy Management to sell the entire company after ending its review of potential asset sales. Both investors criticized Devon’s decision to retain operations outside its core Permian Basin holdings, including assets in Oklahoma’s Anadarko Basin, Pennsylvania’s Marcellus region, and the Rockies. Kimmeridge argued these properties dilute strategic focus, while Toms said potential buyers could offer a substantial premium for the company. CEO Clay Gaspar defended the review, saying Devon remains open to opportunities that create shareholder value but wanted to end uncertainty surrounding possible asset sales. He also noted that the process had distracted employees concerned about whether their operations would be sold. Devon previously agreed in October to sell its Eagle Ford drilling assets in South Texas to Crescent Energy (NYSE: CRGY) for approximately $4.2 billion, following its May acquisition of Coterra Energy. Investors had urged the company to accelerate divestitures or pursue a full sale. Toms expects Devon’s board to engage with interested buyers, while Kimmeridge questioned the board’s credibility in continuing an independent strategy. Devon shares fell 1.4% on Friday and had gained 17% year to date, underperforming the S&P 500 energy sector’s 38% increase.

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11/5/2026

Turton Capital Issues Ultimatum to South Korea's Golfzon Holdings: Accept County Sale, Return Approximately $186 Million to Shareholders

BigGo Finance (11/05/26)

U.S. investor Turton Capital has called on the board of South Korea's Golfzon Holdings (KOSDAQ: 121440) to accept the sale of Golfzon County and return the proceeds to shareholders. Turton, which holds about 3% of Golfzon Holdings, released a presentation aimed at the board on November 5 and pressed the company to issue a formal response by the 10th. It said that absent a reply, it will supplement its complaint to South Korea's Financial Supervisory Service and exercise shareholder rights at next year's annual general meeting. The dispute centers on a deal signed on the 27th of last month under which MBK Partners agreed to sell 100% of Golfzon County to a consortium of The Sienna Group and CL Asset Management at an enterprise value of about 1.8 trillion won (approximately $1.3 billion). Turton estimates that once the transaction closes, Golfzon Holdings would secure about 250 billion won (approximately $186.2 million) after tax, or roughly 6,500 won (approximately $4.8) per share. That is on par with the 6,700 won (approximately $5) per share offered by largest shareholder SJ Investment Holdings in its tender offer. Turton's demands on the board fall into four main categories. First, it wants the company to abandon its legal strategy to block the sale and complete the transaction on MBK Partners' price and terms. It then calls for a tender offer for the remaining minority shares at a fair value determined by an independent director. Buying out all remaining minority stakes at a book value of 19,310 won (approximately $14) per share would require about 111 billion won (approximately $82.7 million), or 44% of the expected sale proceeds, by Turton's calculation. As an alternative to a tender offer, it proposed distributing the entire sale proceeds as dividends, halting the delisting disclosure, and canceling 9.83% of treasury shares. It also demanded the board disclose when it was offered the acquisition opportunity, when it decided to join the bidding, who approved the deal, and its financing plan. Turton also raised questions about the largest shareholder's tender offer process. It argued that although SJ stated in a revised tender offer filing in August that the largest shareholder side was not involved in the County sale process, Golfzon Holdings was later reported to have taken part in the bidding alongside Warburg Pincus until the final stages. It also said the tender offer did not adequately include the co-sale right (tag-along right) and key information about the sale. It raised concerns about the independence of the advice, noting that Samjong KPMG, which served as financial adviser to the special committee, was reportedly also involved in advising MBK on the sale. "Minority shareholders deserve answers, not excuses," said Ryan Albert, chief executive of Turton Capital. "The amended Commercial Act requires directors to perform their duties for the company and all shareholders and to treat shareholders fairly." The remark calls into question the propriety of the board's decision-making. Golfzon Holdings said on the 28th of last month, the day after the sale agreement, that it "cannot agree" and would pursue all means, including legal action. Turton worries that such a response could delay securing the sale proceeds and undermine shareholder value. Some analysts say the focus of the dispute is shifting from the sale itself to who gets the proceeds and how they are used. Investment banking sources see how convincingly Golfzon Holdings can present the economic benefits of opposing the sale as a key variable in the shareholder conflict ahead. The positions of the main stakeholders are as follows: Turton Capital: Accept the sale, drop legal action, conduct a tender offer for minority shares or pay dividends and cancel treasury shares; Golfzon Holdings: Cannot agree to the sale; reviewing all means, including legal action; MBK Partners: Signed a deal to sell 100% of the stake to a consortium of The Sienna Group and CL Asset Management; and SJ Investment Holdings: Stated in the tender offer process that it was not involved in the sale; later faced allegations of involvement.

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11/5/2026

Gold Fields Puts Question Mark Over Northern Star Bid

Miningmx (11/05/26) Mckay, David

Gold Fields (NYSE: GFI) put a question mark over its proposed $23 billion cash and shares acquisition of Northern Star Resources (ASX: NST), the Australian miner, saying in a third-quarter update on Thursday there was no certainty the deal would be done. “Although we remain open to engagement, there can be no certainty that further engagement with the Northern Star Board will occur, that the proposal will progress, or that a transaction will ultimately be concluded,” said Mike Fraser, CEO of Gold Fields. Speaking to the Australian Financial Review last month, Northern Star’s newly appointed CEO Suresh Vadnagra said the board was open to discussions if Gold Fields improved its offer, which represented a softening of the firm’s earlier position, possibly reflecting the views of Northern Star’s shareholder Elliott Investment Management. Northern Star’s board has also changed, with former Anglo American (LON: AAL) CEO Mark Cutifani joining, while chairman Michael Chaney is due to step down at the firm’s annual general meeting later this month. However, Gold Fields will most likely be required to sweeten its offer, which is currently 15% less at an implied value of A$22.90/share compared to A$27.00/share at the time the offer was made on September 14. “While we see compelling industrial logic and synergy opportunity with the proposed combination, any potential transaction would need to be consistent with our disciplined approach to capital allocation and our clear requirement that the transaction creates compelling value for Gold Fields' shareholders,” said Fraser in comments in the quarter three report. Fraser's comments have the flavor of a boilerplate statement, “... but it also serves notice to Northern Star that their only suitor may move on to other, better things if they don't engage,” said an industry source. Gold Fields stands to become the world's second-largest gold producer if the deal with Northern Star is completed. Combined gold production would be 4.1 million ounces a year, with about 80% of production coming from Australia, North America and Chile. But it will require a significant premium. “Deals of this nature typically require premiums closer to 30%, in our view, which is well above the current 22% proposal,” said Arnold van Graan, an analyst for Nedbank Securities (JSE: NED), in a report last month. “A higher offer is, therefore, quite likely,” he added. Production in Gold Fields' third quarter fell 3% to 605,000 oz owing to a grade decline at Agnew, a mine in Australia, and planned lower production from Salares Norte. The Chile mine made it through a second successive winter without output glitches. In its maiden year, Salares Norte was hamstrung by the early onset of a bitter winter. Despite the decline in output, Gold Fields said it was on beam for the upper end of its full-year production guidance of 2.4 to 2.6 million oz. All-in sustaining costs have been guided to $1,800 to $2,000/oz. Costs have ramped up significantly year-on-year owing to gold price-related royalties and input material inflation such as diesel. But at $1,965/oz for the quarter – 26% higher compared to last year – costs were running to plan, it said. Gold Fields appears to be outperforming on its shareholder returns. Including an interim dividend of $878 million and $215 million in share buy-backs during the quarter, total returns for the nine months stood at $1.11 billion of the $1.25 billion allocated last November when the group unveiled its new capital allocation plans. But net debt more than doubled to $981 million as of September 30 (June 30: $437 million). Net debt as a proportion of adjusted EBITDA stood at 0.13 times. “The balance sheet remains robust,” said Fraser. Gold Fields received a major fillip on November 2 when authorities in Canada approved an environmental permit for its $1.9 billion Windfall project in Québec. Windfall is scoped to produce an average of 300,000 ounces of gold a year over the first 10 to 12 years of its operating life. But the miner remains in the dark regarding the extension of its mining license for Tarkwa, a mine in Ghana. With less than six months left before the current license expires, Gold Fields said on Thursday it was “still awaiting feedback on our proposal and have no confirmed timeframe for this response or any further negotiations.” “Our base case remains that the licenses are extended, albeit with higher royalties,” said Matt Greene, an analyst for Goldman Sachs (NYSE: GS), in a report. But amid “significant uncertainty” Gold Fields said it was considering options. “We continue to consider all options available to us with respect to the renewals, including the exercise of our legal rights under the leases, our Development Agreement and at law,” said Fraser. He added that Gold Fields was also running into “increased levels of regulatory activity at Tarkwa,” suggesting heightened government-related interference in the running of the operation. At 101,000 oz, Tarkwa comprised about 17% of Gold Fields' total third-quarter production.

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11/4/2026

South Korea's Life Asset Management Presses Samsung Electronics Over Delayed $55.9 Billion Shareholder Return

BigGo Finance (11/04/26)

Life Asset Management has urged Samsung Electronics’ (KRX: 005930) independent board committee and compliance watchdog to investigate the company’s decision to delay allocating 55 trillion to 75 trillion won ($41 billion to $55.9 billion) in shareholder-return funds until late January 2027. The fund argues that Samsung should explain whether the postponement serves all shareholders’ interests and whether potential conflicts involving controlling-family interests were properly addressed. Life Asset Management has advocated repurchasing and canceling treasury shares, including preferred shares, to improve shareholder value. Samsung’s stock fell following announcements about the delayed decision, while rival SK Hynix (KRX: 000660) gained after committing to substantial share buybacks and cancellations. The scrutiny centers partly on Chairman Lee Jae-yong’s planned receipt of 11.158 million Samsung shares from Hong Ra-hee. The gift-tax valuation period runs from September 12 through January 12, meaning share-price changes could significantly affect the tax bill. Life Asset Management has not alleged a proven connection between the gift and the postponement but wants confirmation that directors considered potential conflicts independently. The fund says transparency, timely capital returns, and credible governance are essential to restoring investor confidence and improving Samsung’s valuation.

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11/4/2026

Smith & Nephew Open to Deal for its Orthopaedics Business

The Times (London) (11/04/26) Ralph, Alex

Smith & Nephew (NYSE: SNN) is pursuing a deal for its orthopaedics business, the FTSE 100 group’s largest, opening the way for a potential break-up of one of London’s oldest listed companies. The medical devices group, alongside a cut to full-year forecasts in its third-quarter trading update, confirmed that its board, led by Rupert Soames, is considering strategic options for its orthopaedics business, which is its best-known and includes hip and knee replacement implants. Smith & Nephew confirmed that it had approached Johnson & Johnson (NYSE: JNJ), the U.S. medical group, this year about a possible combination with the U.S. group’s Depuy Synthes business. Talks did not lead to a deal. “We will continue to actively explore the full range of strategic options for the business as we develop the best outcome for our shareholders, patients, customers and colleagues,” Smith & Nephew said. Potential suitors include larger competitors in the United States, where Smith & Nephew is the fourth-biggest player in the orthopaedics market, behind the likes of Stryker, or a private equity buyer. The strategic review follows long-running attempts to turn around the performance of its orthopaedics business. Smith & Nephew has come under greater scrutiny since Cevian Capital, one of Europe’s largest shareholders, first emerged with a large position in the company in 2024. Cevian raised its stake to more than 14% this year, cementing its position as the largest shareholder. Smith & Nephew, one of the world’s biggest and oldest medical equipment manufacturers, is based in Watford and is developing a new research and development and manufacturing facility in Hull, where it traces its roots to a chemist shop founded in 1856. The company is led by Deepak Nath, its American chief executive. Revenue growth this year is expected to be about 3% on an underlying basis, down from a previous forecast of 4% which Smith & Nephew said reflected its outlook for its U.S. hips and knees business in the fourth quarter. Trading profit growth is expected to be about 4%, at about $1.25 billion, compared with previous forecasts of about 8% growth. The downgrade reflects revenue growth of 3.4% to $1.5 billion in the third quarter, when its orthopaedics business returned to growth “despite soft market conditions and continued weak performance in U.S. hips and knees.” The market in the United States has been shifting towards so-called cementless knees and Smith & Nephew is in the early stages of launching its Landmark version, which it said addresses a “major portfolio gap.” The new system is designed to replicate the knee’s natural motion and support a more personalized approach. Nath said the board was not putting a timeframe on the strategic review and did not have a preferred outcome. Analysts at UBS (NYSE: UBS) said investors may be disappointed as the status of the strategic review “does not imply any immediate action, while based on our feedback there was some optimism this would be the case.” Analysts also noted that Smith & Nephew had not reiterated its medium-term revenue or trading profit targets, raising the prospect of a “reset.” Nath said it would update the market on its outlook in February. “We have revised our full-year guidance to reflect the slower growth in U.S. orthopaedics, which we expect to continue through the fourth quarter,” he said. “Despite this, we remain confident in delivering profit growth ahead of revenue growth, together with strong free cash flow and cash conversion.” He added: “We remain focused on improving performance, enhancing operational efficiency and allocating capital to the highest-value opportunities across our business … while continuing to consider all opportunities that could accelerate value creation in the best interests of shareholders.” Analysts at RBC said another guidance downgrade, following a cut at its half-year results in August, “so late in the year after an in line third quarter suggests a substantial cut to management’s fourth quarter expectations” and “will continue to weigh on management’s credibility.” Shares at Smith & Nephew rose 75½p, or 6.8%, to £11.93 in afternoon trading on the London Stock Exchange (LON: LSEG), reversing losses earlier in the session and leaving them down about 4% this year.

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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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11/6/2026

South Korean Corporate Reforms Hit Rough Patch as Samsung Digs in

Reuters (11/06/26) Hunter, Gregor Stuart; Yang, Heekyong

Global investors are pressing South Korea's biggest conglomerates to speed up corporate governance reforms, saying progress has been uneven, with gains in financials offset by resistance among large chaebol affiliates. Despite a blistering rally this year, South Korea's market remains one of the world's cheapest. The index is up 35% for the year even after a wrenching drawdown since the summer - at one point it had more than doubled - and after selling off it trades on a forward price-to-earnings ratio of about 3.85 times, compared to 17.64 times for MSCI World. About 70% of KOSPI (KOSPI.KRX) stocks trade at or below book value, according to LSEG data. Samsung Electronics (005930.KS) illustrates the persistent discount. It reported the biggest quarterly operating profit by any technology company in history in the third quarter, yet trades at 1.87 times book value, versus 7.8 for Micron (MU.O), 29 for Nvidia (NVDA.O) and 44 for Apple's (AAPL.O). Reforms aimed at attracting more overseas investors remain a work in progress, contributing to investor outflows from Seoul and raising concerns that the momentum behind President Lee Jae Myung's drive to eliminate the so-called Korea Discount could stall. "Banks, or financial holding companies, are moving as they planned according to their value-up plans," said Namuh Rhee, chairman of the Korean Corporate Governance Forum in Seoul. "That said, large-caps -- mainly chaebol affiliates -- are resisting the corporate governance reforms recently and their lobbying has picked up dramatically," he added. Some investors have argued that some conglomerates, particularly Samsung, should return more profits to shareholders, simplify their corporate structures and implement strategic changes or divest from underperforming subsidiaries. Samsung Electronics board chairman Shin Je-yoon met investors overseas before last month's earnings announcement. The meeting followed complaints about the company's shareholder return policy from global investors including Capital Group, Artisan and Fidelity, a person briefed on the matter told Reuters. Investors argued the returns were too modest and said they preferred share buybacks and cancellations to higher dividends, the person said. The meeting and details of the discussions are reported here for the first time. Samsung said in a statement that Shin regularly meets major global investors as part of its shareholder engagement efforts. It said it keeps an ongoing dialogue with key shareholders to understand a wide range of views on shareholder returns and capital allocation. Capital Group, Artisan and Fidelity did not respond to requests for comment. In August, Samsung declared a record 30 trillion won ($22.35 billion) in dividends but said it would decide in January how to deploy the remaining 55 trillion won to 75 trillion won earmarked for shareholder returns. That contrasts with rival SK Hynix (000660.KS), which last month announced a $75 billion shareholder return package including dividends, share repurchases and cancellations. Together, Samsung Electronics and SK Hynix account for slightly more than half of the KOSPI's market capitalization. A law that took effect in March made cancellation of treasury shares compulsory by September next year. Critics say such shares can be used as a takeover defense. Some sectors, particularly financials, have been rewarded by the market for canceling such shares. A gauge of Korean bank shares (KRXBANK) is up 15.9% this year and insurers (KRXINSU) have gained 48%, compared with declines of 42% for shipbuilding and 30% for machinery. Non-financial sectors have been more reluctant to embrace shareholder-friendly measures, and Samsung Group has drawn particular investor ire, even as Samsung Electronics has benefited from the AI boom. Samsung, South Korea's biggest chaebol, has faced growing pressure from investors seeking to capitalize on the government's push for governance reform and changes to the country's Commercial Law. Seoul-based Life Asset Management said it had asked Samsung's board special committee and Samsung's Compliance Committee to independently review the decision to defer the use of the remaining funds until the end of January. The asset manager said the review should examine whether delaying the decision was in shareholders' best interests, whether potential conflicts of interest had been properly managed and whether the remaining funds could realistically be deployed before the end of this year. Palliser Capital, a fund run by James Smith, a former head of Elliott Management's Hong Kong office who has taken on Samsung in the past, has called for preferred-share repurchases and cancellations to be included in shareholder return policies at both Samsung and Hyundai Motor (005380.KRX). Meanwhile, a campaign led by Singapore-based Flashlight Capital calling on Samsung Group to boost returns at its security affiliate S-1 Corp (012750.KS) has been largely rebuffed, although a 450 billion won share buyback announced last month has lifted its shares.

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10/29/2026

Approval Rate of Activist Shareholder Proposals Is Falling in Japan and South Korea

Maeil Business Newspaper (10/29/26)

Shareholder activism is gaining influence despite declining approval rates for formal proposals in Japan and South Korea. In Japan, activists submitted a record 139 proposals in June, but average approval fell to 17%. South Korea saw proposals rise 44% to 218, with only 11% approved. Yet activists secured more Japanese board seats, demonstrating that success increasingly comes through negotiations rather than shareholder votes. Research across multiple countries finds that activism’s returns depend largely on outcomes such as share buybacks and director changes, often negotiated privately. Japan’s governance reforms weakened traditionally management-supportive shareholders, encouraging companies to address reasonable activist demands before meetings. In South Korea, controlling shareholders and affiliated-company stakes limit voting influence, while voting restrictions further weaken proposals. Globally, activism campaigns reached a record 184 in the first half of 2026, with 39% targeting capital allocation, including dividends, treasury shares, and asset sales. Companies sometimes implement demands before votes or adopt rejected proposals through board decisions. However, voting results remain valuable signals of broader shareholder support and can shape future campaigns. Activism therefore unfolds over several years, not at a single meeting. The article argues that boards should focus on explaining capital allocation decisions, business returns relative to capital costs, and plans for accumulated cash, rather than merely calculating voting strength. Proactive, transparent governance can address investor concerns before costly activist campaigns begin.

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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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