Activists Find Bidders for Investment Companies on their Own

August 16th, 2008
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A new strategy for activist investors is to find buyers for the companies they have invested in, sometimes without the management's knowledge or consent. This is a change for the usually shareholder activism, where shareholders sent letters to the management of the company calling for a sale. Recently, Harbinger Capital and Pershing Square Capital have taken it upon themselves to hire bankers and lawyers to search for acquirers for companies they invested in.

Harbinger attempted to find a bidder for Cleveland-Cliffs using this strategy and there are rumors about the hedge fund using the same for AK Steel. Pershing Square also announced that it hired advisers about Longs Drug Stores. Although CVS Caremark recently announced that it would buy Longs Drug Stores, it's not certain if Pershing Square's actions brought about the transaction.

Deal List: - Harbinger Capital – Cleveland-Cliffs AK Steel - Pershing Square Capital - Longs Drug Stores Target Wendy's
For Detailed Investor Profiles on these Investors, click below:
HRG Group (Harbinger Capital Partners)
Pershing Square Capital Management
Related People: Nicholas Botta; Omar Asali (CEO); Peter Jenson (COO); Philip Falcone*; Roy J. Katzovicz; Scott Ferguson*; William 'Bill' Ackman
Related Entities: Harbert Management Corporation*; Harbinger Capital Credit Distressed BlueLine Fund; Harbinger Capital Partners Master Fund; Harbinger Capital Partners Special Situations Fund LP; HRG Capital; Leucadia Corporation (NYSE: LUK); Pershing Square Capital; Pershing Square IV; Pershing Square LP

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