When to Settle, Starboard Launches Elanco Slate, Ubben and Uplight |
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Gladstone Place Partners’ Patricia Figueroa was a featured panelist at The Deal’s Shareholder Activism Seminar last week, where she and fellow speakers discussed the key elements of when to consider settling with an activist investor, and when to take it to a vote. During the panel, Figueroa spoke of how companies weighing a settlement must balance what their largest shareholders want, what their own strategic vision is and what their dissident shareholder’s plan is for the business. Sometimes, these are aligned, and the decision is straightforward. And sometimes, they’re not. The session, titled “To Settle or Go the Distance?” also featured Jonathan Duskin, an activist; Patrick Gadson, a partner at Vinson & Elkins; and Yaron Nili, an assistant professor of law at the University of Wisconsin-Madison. Read our full summary here and see a replay of the session here.
In activism news, Starboard Value is nominating three board directors at Elanco Animal Health, the Wall Street Journal reported. While it is still unclear what course the activist hedge fund wants the company to take, the animal pharma company is currently trading below its 2018 IPO price and recently announced job cuts and site closures – not long after completing its acquisition of Bayer Animal Health.
ESG activist Jeff Ubben was in the news again this week, partnering with Schneider Electric and Huck Capital, among others, to invest in Uplight Inc at a $1.5 billion valuation, Bloomberg reported. The past few weeks have been busy for the former ValueAct chairman, who recently joined the board of ExxonMobil and has held talks to secure $8 billion for his new fund, Inclusive Capital. The utility software company says it plans to use the investment to fund M&A activity, expand its addressable market and build its core software business.
Have a great weekend,
Joel and Connor
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Gladstone Place Partners: Considerations for Settling With Activist Investors
When faced with activist campaigns, corporations must weigh several factors when deciding whether to settle with activist investors, or take it to a vote. Read More
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The Wall Street Journal: Starboard Takes Elanco Stake, Nominates Three to Its Board
Animal-health company has market value of around $15 billion. Read More
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Bloomberg: Schneider Invests in Uplight at $1.5 Billion Value
Huck Capital, AES also participate in the latest investment; Uplight plans to use funds for core business as well as M&A. Read More
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Bloomberg: Kohl’s Lays Out Optimistic Outlook Amid Activist Pressure
Company to resume its dividend and share buybacks this year; Analyst says results show retailer is on path to recovery. Read More
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Financial Times: Cevian calls on boards to end ‘ESG box checking’ and set pay targets
European activist investor’s warning comes as sustainable investing rises quickly up the asset manager agenda. Read More
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Financial Times – Opinion: End of ‘liquidity premium’ to unleash shareholder activism
Companies will face questioning from investors on how to allow allocate excess funds. Read More
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Harvard Law School Forum on Corporate Governance: Climate Risk and the Transition to a Low-Carbon Economy
BlackRock believes that sustainability risk, particularly climate risk, is investment risk. Accordingly, sustainability is a key component of our investment approach. Read More
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Harvard Law School Forum on Corporate Governance: Shareholder Activists Gear Up for a Busy 2021 – With New Tools and Tactics
As we near the end of the first quarter of 2021, the number of activist campaigns appears to be on track to outpace last year. Read More
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The annual Spring M&A and Governance Forum, which is co-hosted with Freshfields Bruckhaus Deringer, features a supergroup of government officials, executives, academics, private practitioners and in-house lawyers, as well as over 400 other participants.
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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. The Institute will be delivered in a virtual format, with live online presentations throughout the two days of programming.
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