Wednesday, December 10, 2008

Shareholder Activism Insight

Marc Weingarten and David Rosewater from Schulte Roth & Zabel, a couple of the better legal minds working with activist investors (and some companies too), recently issued an interesting report titled “Shareholder Activism Insight”. Click here to get the full report.

The report highlights current trends in activist investing and provides an outlook for activist investing in the year ahead.

SRZ commissioned mergermarket to interview 25 senior corporate executives and 25 activist investors regarding their thoughts. Here are a few highlights:

  • 56% of overall respondents expect to see an increase in shareholder activism over the next 12 months.
  • 48% of corporate respondents view activist shareholders as short-term market opportunists.
  • 48% of activists believe corporate boards are passive rather than proactive when it comes to maximizing shareholder value.
  • 48% of activists were passive investors for a year or more before turning active.
  • 67% of corporate respondents believe the best defensive strategy a company can use against activism is maintaining an active dialogue with its shareholders.
Posted by Damien Park, Hedge Fund Solutions