Of all the demands that activist hedge funds make, one has emerged as a clear favourite over the past year: Asking the management of a company they target to put up the “for sale” sign. Heady valuations have made the windfall from a sale too hard to resist for dissident shareholders, turning what used to be a fall-back option in past campaigns into preferred strategy, and prompting a slew of takeovers in the process. The uptick in activist-driven deals has helped boost returns of the dissident investors. However, campaigns to spur company sales could put ...
Activist hedge funds pull hard on the M&A lever
For activists, the demands are increasingly turning into deals