Daily Actvist Investing May 11: Either way, this doesn't end well for Peltz

Activist sponsors, weak Monday, but major activist stories and news for May 11 below. We’re taking leads at @activiststocks, daily newsletter sign up, ICYMI the latest newsletter is here.

News-

  • Tempur took the resignations of the three directors (CEO included) that got a vote of no confidence on Friday. CEO is stepping down tomorrow. H Partners got the win here, owning around 10%. A fairly big surprise; props to H Partners’ marketing. What they do now, who knows - their 100-page presentation did little to outline exactly how to fight off competition in an increasingly commoditized industry [100 pg. presentation]

  • Trian Partners has a full page ad in the Wall Street Journal today [see it here], trying to convince shareholders to vote for them in the proxy battle. Again, Peltz’s downfall will be the large passive pansy investors like Vanguard and the company’s high number of retail ‘sheep’ investors [link to Peltz’s downfall: Passive pansies & sheep]

Stories-

  • Keeping with the DuPont theme, @stephengandel has a piece at Fortune about the 4-month long battle between Trian and Peltz and whether it’s a net negative for activism. It’s a long read, but as you might imagine, the thesis is that if Peltz wins it’ll encourage other activists to take on larger targets [link]