Meme Stocks, SPACs and Shareholder Activism |
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First, Activism + Meme Stocks: Ryan Cohen, Chewy Co-Founder and chairman of GameStop, is now a top-five shareholder at Bed Bath and Beyond. On Sunday, he asked for a strategic overhaul of the business including the sale of BBBY’s Buybuy Baby franchise. Readers will recall that BBBY is a common activist target, and that Cohen’s argument is not quite a new one; Cohen, however, does enjoy something of a cult-like status among retail traders following his success at GME. The big question is whether and how the retail crowd will follow him into this one.
Second, Activism + SPACs: Third Point this week became the first major activist to target a company that went public via SPAC during last year’s boom. Dan Loeb’s fund disclosed a 6.4% stake in Cano Health and is pushing for a sale process for the senior healthcare services company. Activist campaigns on recent de-SPAC companies had been widely speculated and anticipated by observers, and some see Cano as the first of several.
Next week, we will be reporting from the Big Easy, and look forward to seeing many of you in person at the 34th Tulane Corporate Law Institute. Stay tuned for some insights from the conference!
Have a great weekend,
Chris and Felipe
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Wall Street Journal: Chewy Co-Founder Ryan Cohen Takes Large Stake in Bed Bath & Beyond, Pushes for Changes
Billionaire investor wants the chain to simplify its turnaround plan and consider a sale or separation of Buybuy Baby. Read More
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The Deal: GameStop Activist Follows Trio’s Bed Bath Insurgency
Chewy.com founder Ryan Cohen wants the retailer to do something that a trio of activists couldn't achieve previously: have it divest its large Buy Buy Baby unit or sell itself. Read More
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MarketWatch: Ryan Cohen’s latest meme stock crusade is taking him beyond GameStop
Cohen’s inscrutable tweets will now be perceived to be about videogames AND fluffy towels. Read More
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Axios: Activist Investor Dan Loeb Pushes Cano Health to Sell
This is the first major activist targeting of a company that went public in the recent SPAC boom. Read More
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Bloomberg: SPAC Boom Creates Fresh Targets for Short Sellers, Activists
Blank-check deals help businesses go public faster, and that has investors who hunt weak companies getting ready to pounce. Read More
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Bloomberg: Ackman’s New CP Rail Stake Worth $1.2 Billion
Bill Ackman said Monday he had invested once again in Canadian Pacific Railway Co., a decade after he replaced the railroad’s board of directors and implemented the late Hunter Harrison as chief executive officer in a high-profile proxy battle. Read More
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Bloomberg: Toshiba Split Proposal Dealt Blow as Proxy Firm Rejects Plan
Toshiba Corp.’s proposal to split into two companies has been dealt a blow after a prominent shareholder advisory firm and largest stockholder came out against the plan. Read More
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Fortune: When It Comes to ESG, Your Shareholders Want a Plan This Proxy Season
It's the annual meeting season for corporations, and environmental, social, and governance (ESG) will continue to be on the agenda. Read More
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Financial Times: Binance Plots M&A Spree As Regulators Scrutinise Crypto Trading Unit
Group looking to scoop up businesses that operate in traditional markets following earlier investment in Forbes. Read More
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Reuters: Women Workers Could Drive $1 Trillion Rise in U.S. GDP, Moody's Says
The U.S. economy could get a $1 trillion boost over the next 10 years if female labor market participation grew to the levels seen in other developed economies, a report on gender equality said on Tuesday. Read More
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The New York Times: Russia’s War Prompts a Pitch for ‘Socially Responsible’ Military Stocks
Bombs, guns and fighter jets aren’t typical E.S.G. investments, but two Citi analysts say they should be. Advocates for “socially responsible” investing call the idea “absurd.” Read More
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Wall Street Journal: Carl Icahn Exits Occidental Petroleum After Nearly Three Years
In a letter to the company’s board, the activist investor says his two remaining board representatives are also resigning. Read More
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Yale School of Management: Over 300 Companies Have Withdrawn from Russia - But Some Remain
Since Putin's devastating invasion of Ukraine began, over 330 companies have announced their withdrawal from Russia - but some companies have continued to operate undeterred. Read More
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Harvard Law School Forum on Corporate Governance: Workforce Diversity Data Disclosure
After a year and half of pledges and promises to help advance racial equity, totaling at least $50 billion, investors, regulators, employees, and other key stakeholders are still looking for signals of action from corporate America. Read More
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Through a combination of focused lectures and case studies, curated readings, and in-depth interviews with over 50 thought leaders, we demonstrate how to incorporate environmental, social, and governance considerations into business and investment strategy.
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Now recognized as one of the premier M&A, corporate and securities law conferences in the country, the Tulane Corporate Law Institute continues to deliver an unparalleled educational and networking experience in a fascinating city.
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Hosted at the Lotte New York Palace, 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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