Confessions, and advice, from a director who was once an activist.
By Jim Lawrence
Nelson Peltz. Third Point. Cevian Capital.
If you haven’t heard of any of these, it may mean that you do not own shares of Proctor & Gamble, Nestle or Ericsson, respectively. Because those three names — a billionaire and two hedge funds — took on those corporations in the demolition derby that is modern shareholder activism.
Once dismissed as mere disgruntled loudmouths, shareholder activists have long been portrayed as modern-day pirates, forcing loyal board members and management to walk the plank while they plunder vulnerable companies. They were rogues taking treasures that didn’t belong to them. But today’s activist investors want something different — something that may actually benefit companies.
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