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Nov 8, 2015

Insight – Activist stampede pushes board directors into shareholders’ arms

NEW YORK (Reuters) – A few days after joining the board of Atlantic Power, private equity veteran Gilbert Palter said he got a flurry of calls from the energy company’s top shareholders, who wanted more than just to wish him well.

“They wanted to hear my perspective on the company. And they wanted to bend my ear with their own thoughts,” said Palter, co-founder of EdgeStone Capital Partners in Toronto. He said he’s mindful of not speaking for the company but rather as a member of the board.

Nov 8, 2015

Activist stampede pushes board directors into shareholders’ arms

NEW YORK, Nov 8 (Reuters) – A few days after joining the
board of Atlantic Power, private equity veteran Gilbert Palter
said he got a flurry of calls from the energy company’s top
shareholders, who wanted more than just to wish him well.

“They wanted to hear my perspective on the company. And they
wanted to bend my ear with their own thoughts,” said Palter,
co-founder of EdgeStone Capital Partners in Toronto. He said
he’s mindful of not speaking for the company but rather as a
member of the board.

Nov 7, 2015

Valeant investors divided on fate of CEO Pearson

Nov 6 (Reuters) – Large investors holding stock in Valeant
Pharmaceuticals International Inc are split
over whether to support the embattled drug company’s chief
executive or to advocate for new leadership, as the company
struggles to recover from a stock plunge sparked by allegations
of faulty accounting.

Interviews with fund managers invested in the company
suggest that while Valeant CEO Michael Pearson still enjoys
solid support from some key investors, the backing may be
waning, with other investors saying they think new leadership is
needed to stabilize the company.

Nov 6, 2015

Top fund firms stay conservative in support for activists: report

NEW YORK/BOSTON (Reuters) – Three top U.S. asset managers shied away from supporting dissident directors in recent proxy contests, according to voting data, showing how corporate management teams can still depend on key players in the fund industry for backing in the face of an activist fight.

The data, dating back to 2013 and compiled by financial services group Houlihan Lokey, showed that since 2013, funds sponsored by BlackRock Inc, Vanguard Group Inc and State Street Corp all voted for just a minority of the 229 board seats sought by directors aligned with dissident shareholders.

Nov 5, 2015

Exclusive: Bass Pro Shops explores bid for Cabela’s – sources

By Lauren Hirsch and Michael Flaherty

(Reuters) – Privately held outdoors retailer Bass Pro Shops is exploring an offer for Cabela’s Inc (CAB.N: Quote, Profile, Research, Stock Buzz), the U.S. hunting and fishing store chain targeted by activist investor Elliott Management, people familiar with the matter said.

Bass Pro is working with an investment bank on the potential offer, the people said this week. Cabela’s has recently begun to explore its options and has also reached out to private equity firms to solicit interest, the people added.

Nov 3, 2015

Icahn nods at Valeant interest, pushes for cash repatriation law

NEW YORK (Reuters) – Billionaire investor Carl Icahn made a cryptic reference suggesting he has an interest in embattled drug maker Valeant on Tuesday, and said he was speaking to U.S. politicians about a corporate cash repatriation law that would deter so-called tax inversion deals.

“I’m not in Valeant, well, I don’t want to say I’m not completely in it but I’m not going to tell you where I am with it,” Icahn said, when asked about the company at the New York Times DealBook conference. He did not explain further.

Oct 29, 2015

CVS, Express Scripts drop Valeant’s Philidor; stock dives

Oct 29 (Reuters) – Valeant Pharmaceuticals Inc. sustained
hits on several fronts on Thursday after CVS Health Corp and
Express Scripts dropped Philidor from their networks in a sign
the fallout from the drugmaker’s connection with the specialty
pharmacy is spreading.

The moves by the nation’s two largest pharmacy benefit
managers whacked Valeant shares before the market close, and
pushed them 10 percent lower to $99 after hours.

Oct 29, 2015

Valeant’s top shareholder defends stake in the company

By Michael Flaherty and Vidya L Nathan

(Reuters) – Valeant Pharmaceuticals International Inc’s (VRX.N: Quote, Profile, Research, Stock Buzz) largest shareholder defended its investment in the embattled drug-maker, saying allegations against the company are false and that there is no legal case preventing ties to a specialty pharmacy.

Fund manager Ruane, Cunniff & Goldfarb Inc, which has a history is entwined with legendary investor Warren Buffett, owns a 9.93 percent stake in Valeant as of June 30, Thomson Reuters data show. The data also show that the Valeant stake comprises one-third of Ruane, Cunniff & Goldfarb’s overall holdings – a much higher than normal exposure to a single stock.

Oct 28, 2015

Icahn takes stake in AIG, calls for breakup

By Richa Naidu and Michael Flaherty

(Reuters) – Activist investor Carl Icahn said he owns a “large stake” in American International Group Inc (AIG.N: Quote, Profile, Research, Stock Buzz) and urged the insurer to spin off its life and mortgage units into public companies to avoid being tagged as a systemically important financial institution.

AIG’s shares shot up as much as 4 percent in heavy trading on Wednesday after Icahn released his proposal, which he said was supported by hedge fund manager John Paulson. Paulson, which owns 1.1 percent of AIG, added a quote to Icahn’s letter that said AIG can trade over $100 per share.

Oct 27, 2015

ValueAct rallies Valeant investors as company fends off attack: source

By Michael Flaherty

(Reuters) – Activist firm ValueAct is meeting with other large investors in Valeant Pharmaceuticals International (VRX.N: Quote, Profile, Research, Stock Buzz), as the company aims to rally support amid allegations of improper accounting and aggressive pricing.

Mason Morfit, a partner at ValueAct, rejoined the board of Valeant on Monday and shortly afterwards started meeting with representatives from the company’s top ten investors, a person familiar with the matter said on Tuesday.

    • About Michael

      "In June 2009, Michael Flaherty became a Chief Correspondent for Reuters News, leading a team of journalists who cover investment banking, mergers & acquisitions, private equity and hedge funds, equity capital markets, natural resources and property across Asia. He arrived in Hong Kong in Feb. 2008 as Reuters' Asia Financial Services correspondent, covering the investment banks and M&A. Flaherty was hired by Reuters in New York in Dec. 2003. He was voted Reuters Journalist of the Year for his 2007 coverage of the U.S. private equity boom and bust. He started at Reuters with the consumer group covering office retailers ..."
      Joined Reuters:
      Dec. 1, 2003
      Awards:
      Peninsula Press Club, 2002, Reuters Journalist of the Year, 2007, M&A International, 2007
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