Activists have gone quiet during the pandemic (Time for compromise not…
Activists have gone quiet during the pandemic
HP + Compaq in 2002
"slow moving collision of two garbage trucks"
Xerox bid of $33bn
"two garbage trucks in a high rev demolition derby"
HP more than 3x Xerox but with huge pile of debt
Held stakes in both firms and initially reaped rewards as share prices rose.
Win at all costs investor
Plunders corporate Balance Sheet to return cash to shareholders
Xerox withdrew its bid
Citing economic crisis and disruption due to Covid-19
Icahn's investments have plummeted in value
Activism has not been so quiet since 2007-09
Corporate have plenty of reasons to bide their time
Perceived as greedy while workers are being laid off
Struggle to value targets accurately, given collapse in revenues
Crisis-induced redemption from investors
Time for compromise not aggression
Icahn gave up on ousting the board of Occidental Petroleum
Elliot Management cited market turmoil to succumb to Capgemini's acquistion of EM portfolio company Altran
The number of companies targeted by Activists globally has fallen 25% from this time last year
Expected to plummet further in the coming months