One Big Bad Day In August As Activist Investors Strike In Force

August 16th was a mighty bad day for three big companies - with big WSJ headlines announcing “Cardinal Health Under Pressure” as activist investor Elliott Management seeks “a handful of seats on the board,” in an effort to jumpstart the stock price…”Third Point Buys Stake In  Disney, Seeks Spinoff” (which, happily, Disney settled by agreeing to add a new director)… and “Activist” (Politan Capital Management) “Has 9% Stake In Massimo.”

Given the current state of the global economy, and recent stock market volatility – often with no rhyme or reason we can discern as long-time investors – we expect the pace of activism to continue unabated – and likely to increase with the upcoming 2023 proxy season in mind. 

With all this in mind, smart issuers will want to be getting themselves into fighting trim – and to avoid being “named and shamed” – or worse, sued, or hit with big fines and penalties - at all costs. For starters, review some of the BASICS regarding the appointment of Inspectors of Election – and the importance of having all one’s paperwork in proper shape, further down in this issue. 

Then, check out our 2014 article What To Do When Activists “Knock” which is still on the money. Lastly, watch for our upcoming Special Supplement that will have still more practical tips for the current and even scarier environment we’re in today.