Activist Investors Throw in Towel as Market Turmoil Rages
Activist Investors Throw in the Towel as Market Turmoil Rages
(Bloomberg) -- Activist shareholders are giving up on some of their campaigns amid historic market volatility.
Elliott Management Corp. dropped its opposition Wednesday to Altran Technologies SA’s $4 billion takeover by Capgemini SE, citing “current market conditions.” The investment firm led by Paul Singer said it will sell its stake in Altran to Capgemini, after arguing for months that the the deal undervalued the French technology consulting firm.
Robert Tchenguiz, who had been challenging FirstGroup Plc’s management for at least four months, announced Wednesday that he no longer holds a material interest in the transport operator. Tchenguiz “regrettably” sold his stake in FirstGroup, which owns the Greyhound bus line, “due to the unprecedented circumstances and the consequential challenges the world is now facing,” he said in a London filing.
The U.K.-based investor said he still supports the changes being proposed by fellow activist Coast Capital and is “sorry” he won’t be able to participate in the value creation that the plan will deliver.
Shares of FirstGroup were up 24% at 3:54 p.m. Thursday in London, outpacing the 1.5% gain in the benchmark FTSE 100 Index and giving the company a market value of about 426 million pounds ($502 million).
They’re not the only ones sounding a note of caution. Billionaire hedge fund manager Bill Ackman said Wednesday that if immediate action isn’t taken, the U.S. could enter a “Depression-era period” and millions of people could die globally until a vaccine becomes available. Boeing Co. won’t survive without a government bailout, and the hotel and restaurant industries could go bankrupt if there’s a prolonged shutdown, Ackman, who runs Pershing Square Capital Management, said in a CNBC interview.
To be sure, activist investing remains alive and well.
Mason P. Slaine disclosed a stake in Tribune Publishing Co. Wednesday, saying the newspaper chain should consider selling its BestReviews division, according to a regulatory filing.
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