Activist Stocks: ValueAct making moves?

Activist patron, lightish day today. News and stories for June 11 below - as usual the free newsletter is on a 24-hour delay; Activist Strategy subscribers get it on publication day [you can get a 2-week free trial here]. Tip us off at @activiststocks and here’s the free daily newsletter sign up.

What we've been up to - we've built a master sheet for Activist Strategy and created a catalyst worksheet that houses ~40 event driven ideas that will be updated at least weekly [sample here] - get the first copy by signing up for Activist Strategy below.

News-

  • ValueAct is reportedly dumping 3.75 million Valeant Pharmaceutical shares or about 20% of it $VRX stake. That’ll raise around $850 million. Let the speculation begin; is he putting that money to use in 21st Century Fox? A relatively new activist target of his. Or is it Precision Castparts? A new holding in 1Q15.

  • Johnson Controls is contemplating a split of its auto business from the other lines - without an activist investor. But of course Marty Lipton has his hands in this, acting as an advisor to $JCI. In any case, this sheds a new light on auto parts maker Lear, who Marcato Capital is trying to get to split.

  • Elliott Management and Paul Singer sent a letter to Citrix, thinks the company can reach $90 to $100 a share by end of 2016 if it engages on a plan [link to letter]

Stories-

  • Let’s talk shareholder activism in Europe - along those lines, higher returns attract more interest - hence why the money is flowing into the space. Of note, “In general, however, activists in Europe have taken a more cooperative approach compared to the US” [link]

  • @turnergs at the WSJ details a story of Knight Assets activist campaign at Eros. The key issue being, “The problem for Knight was that Eros was keen to build its nascent Indian TV network, which included a partnership with HBO, rather than concentrating on building out its online streaming business, titled ErosNow.” That has changed recently, as Eros has shelved its foray into TV for at least a year, if at all [link]

What we’ve been working on-

  • A look at a major pharma company targeted by an activist investor [complete paywall]