Daily Activist Investing May 22: European activism just doesn't work
Activist grabbers, fairly busy day today with catching up on some other (non-pressing) news. Top activist stories and news for May 21 set up below - of note the free newsletter is on a 24-hour delay. Activist Strategy subs are the only ones getting immediate access. Still taking leads at @activiststocks and daily newsletter sign up still here. Quick programming note, we're sending out our quarterly activist newsletter to subs tomorrow - we aren't doing a la carte just yet, but can get you the sign up details for that newsletter if interested, just email us.
Legion Partners activist target, Perry Ellis, saw the apparel maker’s CEO step down. His son will takeover, but that’s still keeping it in the family [link to news]
Land & Buildings has ended its proxy battle with MGM, saying it no intends to nominate any candidates for the board because the company has done a great job making changes over the last few months. ISS and Glass Lewis were only supporting one of L&B’s four directors [letter]
The Clinton Group booked a win at Imation getting three board members on the board and getting both the chairman and CEO off the board [link to news]
Cannell Capital penned another letter related to its TheStreet stake. This time the letter wasn’t to Jim Cramer, rather shareholders, urging them to overhaul the board [letter]
@sarahgor at the FT pens a piece on European activism. The key being, “...there appears to be only modest or no shareholder value created when the activist achieves changes in the board structure or the payout policy of target firms...” Now that means that “the ineffectiveness of shareholder activism may be one reason why, despite Europe’s listed companies sitting on about €1tn of cash, they continue to hoard it rather than spend it either on dividends or on investment” [link]