Daily Activist Investing June 3: Activist Investing isn't American

Activist adventurers, big day today with activist-related stories and news for June 2 - as usual the free newsletter is on a 24-hour delay; Activist Strategy subscribers get it on publication day. Tip us off at @activiststocks, daily newsletter sign up is here and check here are the past newsletters.

News-

  • Silchester International Investors is active in Japan’s Rohto Pharma, owning 7.1%. Silchester has said it’s looking to press the Japanese drug company to change its capital policies, such as raising dividends and retiring treasury shares.

  • MFP Investors is now an activist in the $60 million market cap alfalfa seed grower and processor, S&W Seed Company. It changed its passive stake from passive to active [link]

  • The FrontFour Capital target OMG Group is getting bought out for $34 a share. It is the activist’s number one stock holding and was down 10% (before the buyout) since going active.

  • Farnam Street gets approval to up its stake in Pro-Dex by around 50% Farnam already owns 12.3% of the $9mm market cap surgical and dental products company.

  • Ronald Chex reached out to Sabra Capital target Cinedigm, sending the company a letter to voice his disapproval of management and to urge the company to give him a board seat [letter]

  • Marcato Capital filed its 2nd notice with the Delaware courts to challenge the confidential treatment of documents in the Third Point versus Sotheby’s settlement from 2014.

  • Glenview Capital is now active at Manitowoc alongside Carl Icahn, owning 7.1%. It’s Glenview’s first activist campaign that’s non-healthcare related. Worth noting is that Icahn is down 15% since going active at Manitowoc, despite a couple big wins. [link]

  • LinkedIn got a lot of action yesterday after speculation hit that an activist investor (Carl Icahn?) was sniffing around and potentially taking a stake. 92.7% of the time, speculation and chatter is just that, speculation [link]

Stories-

  • @SitkaWriter at Bloomberg pens a piece on how Jeff Smith at Starboard Value put Olive Garden board members to work waiting tables. Of note, Every board member worked a night in a restaurant, said Starboard Chief Executive Officer Jeff Smith, who also is Darden’s chairman. Smith said he waited on tables and served food in the kitchen” [link]

  • @DunstanPrial at Fox Business gives a superficial look at the shift from corporate raiding of the 80s to activist investing of today, the key takeaway, ““I think the worst of these guys are in it to make money for themselves and their funds,” he said. “They call themselves activists but their goals are the same. I think they’re just another transformation of the corporate raiders of the 1980s. In the end, I don’t really think they’re good for America” [link]