Wachtell Lipton on Dealing with Activist Hedge Funds and Other Activist Investors

The SEC rule requiring a universal proxy card in director election proxy fights becomes effective today [September 1].  The resurgence of activism is already in progress, and the universal proxy card may significantly facilitate some proxy contests in which an activist is seeking to elect one or more directors to a company’s board to replace incumbent(s).  It will also affect proxy contest strategies, tactical considerations and the behavior of proxy advisory firms assessing competing director slates.  As stated by ISS in its report on the universal proxy card:

The indisputable fact about the universal proxy card (UPC) is that it … Read more

Wachtell Lipton on Dealing with Activist Hedge Funds and Other Activist Investors

Despite a short dip at the outset of the pandemic, activism has rebounded and now continues at an ever-growing intensity.  As we have previously noted, regardless of industry, size or performance, no company should consider itself immune from activism.  No company is too large, too popular, too new or too successful.  Even companies that are respected industry leaders and have outperformed the market and their peers have been and are being attacked.  And companies that have faced one activist may be approached, in the same year or in successive years, by other activists or re-visited by the prior activist.

Although … Read more