Addressing The New Shareholder Activism

As activists have become more prevalent, sophisticated and professionalized, many institutional investors have embraced them. M&A and divestment strategies as well as governance issues may be on the table, as well-known large-cap companies are targeted. Remaining undetected until they have acquired a significant stake in a company is a big advantage for activists, so boards and management should implement stock-watch programs. Above all, they should keep in mind what wins or loses these battles: Fundamentally, it’s not the legal defense.