Drama Continues for Unilever, Kohl’s Potential Proxy Fight
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Another eventful week at Unilever. In a matter of a few days, the company revealed, and then quickly dropped its pursuit of GSK's consumer arm following backlash from investors who questioned the $68 billion price tag and overall rationale. Fundsmith’s Terry Smith took the pen again, writing a scathing “Post Mortem” letter on the situation in which he called the bid “a near death experience.” Management ultimately gets credit for listening to investors and dropping the matter, but the damaging episode leaves open questions about the company’s path forward. Someone needs some Advil.
Speaking of headaches, consider Kohl’s and Macellum. One year after a proxy fight and settlement that gave Macellum Advisors two board seats in KSS, the New York hedge-fund is gearing up for another fight. In a letter to shareholders this week, Macellum said 2021 was a “lost year” for KSS, and urged a strategic review or potential sale of the business. Could they get their wish? Shortly after Macellum published its letter, Reuters had the scoop that the department store chain had been approached by Acacia Research – a little-known company backed by Starboard Value – to discuss a potential bid. The pressure is on for Kohl’s March 7 Investor Day, where the company plans to share more details about its strategic initiatives and capital allocation plans.
Have a great weekend,
Chris and Felipe
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Financial Times: Terry Smith Launches New Attack on Unilever Management
Top shareholder urges executives to improve business rather than chase big acquisitions. Read More
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Business Insider: Wall Street is coming for Kohl's
The department store chain that was said to defy the retail apocalypse is now falling victim to the same challenges as its competitors. Read More
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Larry Fink’s 2022 Letter to CEOs: The Power of Capitalism
Stakeholder capitalism is not about politics. It is not a social or ideological agenda. It is not “woke.” It is capitalism, driven by mutually beneficial relationships between you and the employees, customers, suppliers, and communities your company relies on to prosper. Read More
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DealBook: Larry Fink Defends Stakeholder Capitalism Companies thinking beyond profits isn’t “woke,” the BlackRock founder argued in his latest letter to Wall Street chiefs. Read More
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Wall Street Journal: On Wall Street, Bonuses Are Up but the Mood Is Not
Pay rose twice as fast as revenue at Wall Street’s biggest banks in 2021; it probably won’t happen again, they say. Read More
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Wall Street Journal: Senate Panel Approves Antitrust Bill Restricting Big Tech Platforms
Legislation would bar Amazon, Google, Apple and others from favoring their own products over competitors.’ Read More
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Axios: Investors Concerned About Golden Parachute If Activision Boss Leaves
An activist investor group that previously called on Activision Blizzard CEO Bobby Kotick to resign is now raising concerns about the executive’s golden parachute, should he exit the company. Read More
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Financial Times: From Profit to Purpose: Business Schools Grapple with How to Teach ESG
Institutions face an uphill battle to define the values and skills associated with sustainability and then integrate them into curricula. Read More
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Harvard Business Review: How Social Enterprises Can Help Corporations Meet Their ESG Goals
To deliver on ESG commitments, many will rely on corporate social responsibility (CSR) initiatives, but CSR alone isn’t enough to achieve meaningful progress. Read More
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Lazard's Annual Review of Shareholder Activism – 2021
Key takeaways from the report include:
- U.S. Activity Leads Global Market in 2021
- Resurgence of Leading Activists in Europe
- Fewer Board Seats Won, Largely via Settlement
- M&A-Related Activism Dominates
- Regulatory and Voting Changes Likely to Impact Activism in 2022
- Escalation in ESG Activism
- Read More
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Hosted at The Westin New York Grand Central, this event will focus on the latest campaign practices of activists, how they unfold, their outcomes, and how boards and executives work constructively toward improved stock performance.
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