Shareholder Activist Week in Review

June 1st, 2009
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With proxy season in full throttle this past week, many of the most heated shareholder activist battles experienced major developments. The biggest activist hedge fund winners of the week were Steel Partners, Carl Icahn and Eastbourne Capital Management, while the biggest losers were Bill Ackman of Pershing Square and Millbrook Capital. Below is recap for all the biggest developments of last week.

Biggest Winners:

Aderans Holdings (8170.T) – For the second year in a row, shareholders of the Japanese wig maker voted in favor of Steel Partner’s activist agenda. Shareholders elected all of the activist fund’s nominees to board of directors, effectively ending Unison Capital’s attempt to purchase a 35% stake in the company.

Amylin Pharmaceuticals (AMLN) – On Wednesday, shareholder activists Carl Icahn and Eastbourne Capital Management celebrated as it was announced that two out of their five board nominees had successfully won seats on Amylin’s board. Besides not winning all five seats, the activists also did not get enough votes to reincorporate the company in North Dakota from Delaware. Amlyn’s stock gained 21 cents or 1.89% over the week, closing at $11.32 on Friday.

Undecided:

Biogen Idec Inc (BIIB) – Biogen Idec announced in a press release that both Proxy Governance Inc. and Glass, Lewis & Co. were supporting the company’s slate of directors. On the other side, Carl Icahn’s activist slate received support from RiskMetrics Group, which recommended that shareholders vote for two of the hedge fund manager’s four nominees. The winners will be decided on Wednesday June 3rd at the company’s annual shareholder meeting. Biogen’s stock gained $1.40 or 2.78% over the week, closing at $51.79 on Friday.

Biggest Losers:

Target Corporation (TGT) – Bill Ackman’s long standing activist battle against Target Corp suffered a devastating loss on Thursday when Target announced that all four of Pershing Square’s nominees had been handily defeated. Target’s stock fell by $1.44 or 3.53% over the week, closing at $39.30 on Friday.

Chemed Corporation (CHE) – Millbrook Capital, also know as MMI Investments, withdrew its activist slate of nominees after several influential proxy advisory firms gave the company’s slate of nominees their full support. Millbrook may not be gaining board representation, but at least the value of their CHE holdings increased. Chemed’s stock gained $1.09 or 2.93% over the week, closing at $38.27 on Friday.
For Detailed Investor Profiles on these Investors, click below:
Eastbourne Capital Management
Icahn Associates (Carl Icahn)
Millbrook Capital Management (MMI)
Pershing Square Capital Management
Steel Partners
Related People: Alexander J. Denner; Brett Icahn; Carl Icahn; Clay Lifflander; John S. Dyson; Joshua Schechter; Keith A. Meister*; Lawrence Butler; Nicholas Botta; Rick Barry; Roy J. Katzovicz; Scott Ferguson*; Warren G. Lichtenstein; William 'Bill' Ackman
Related Entities: Black Bear Hedge Funds; Dyson Family; High River Limited Partnership; Icahn Partners; Icahn & Co Inc; Icahn Associates; Icahn Enterprises (formerly American Real Estate Partners); Icahn Fund Ltd; Icahn Partners LP; Leucadia Corporation (NYSE: LUK); MMI Investments, L.P.; MMI LP; Pershing Square Capital; Pershing Square IV; Pershing Square LP; Robertson Stephens*; Steel Partners; Steel Partners II Master Fund LP; Steel Partners Japan Strategic Fund; Steel Partners LLC; WebFinancial LP
Related Article Tags: Shareholder Activists, Corporate Raiders and Proxy Battles


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