What’s New In Activism – Concerns About Solvay’s Operations
Glass Lewis raised concerns about the climate impact of Solvay SA (EBR:SOLB)’s operations in Italy, the heart of a battle between the Belgian chemicals group and activist investor Bluebell Capital Partners.
The proxy adviser said Solvay was facing reputational damage due to the controversial plant that discharges the residues of sodium carbonate production into the sea in Rosignano. However, it subsequently changed its recommendation from “against” a proposal absolving the directors of responsibility to instead suggest Solvay shareholders should abstain at today’s annual meeting.
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"The company's exposure to reputation risks increased significantly last year after allegations that the Rosignano plant discharges may contain polluting heavy metals and the relative attention of the media, as well as company shareholders and activists," said a recent report. In it, Glass Lewis recommended a vote against ratifying the board's acts for the past fiscal year.
Institutional investors are seemingly divided over whether to support Bluebell Capital in its endeavors. California State Teachers' Retirement System has pre-declared its intention to vote against Solvay's proposal, while Norges Bank Investment Management and Calvert Research & Management announced they will support management.
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Activism chart of the week
So far this year (as of May 5, 2022), 12 Australia-based companies have been publicly subjected to remove personnel demands. That is compared to three in the same period last year.
Source: Insightia |Activism
What’s New In Proxy Voting - Call For Twitter To Be 'Public Benefit Corporation'
Shareholder Commons told Elon Musk to convert Twitter Inc (NYSE:TWTR) into a "public benefit corporation" to make sure the social media platform does not become "a threat to healthy public debate" once private.
"As the sole owner of Twitter, you will have virtually unrestricted power over one of the most important communication platforms on the planet," the shareholder advocacy group said in a May 4 letter to Musk, who is on the verge of acquiring Twitter for around $44 billion.
To achieve that aim, Shareholder Commons suggested Twitter become a public benefit corporation, with a focus on both profit and mission alignment.
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Voting chart of the week
So far this year (as of May 6, 2022), only three FTSE 100 remuneration reports have faced opposition of 20% or more. That is down from seven companies over the same period last year.
Source: Insightia |Voting
What’s New In Activist Shorts - Adler Shares Halving
Adler Group SA (ETR:ADJ) shares nearly halved on May 2 after the German real estate group, already accused of fraud by Viceroy Research, said its auditor had declined to sign off its annual results, triggering a board crisis.
Accountancy firm KPMG said that it was unable "to obtain sufficient appropriate audit evidence" after Adler's management "denied us access to certain information." KPMG's refusal to sign off on the accounts prompted the exit of Adler Co-Chief Executive Maximilian Rienecker and three other board members, the company said in a Saturday statement.
Adler's stock was down 40% at 4.33 euros on May 2 afternoon trading in Frankfurt, after trading below 3.9 euros in the morning.
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Adler shares nearly halved on May 2 after the German real estate group, already accused of fraud by Viceroy Research, said its auditor had declined to sign off its annual results, triggering a board crisis.
Accountancy firm KPMG said that it was unable "to obtain sufficient appropriate audit evidence" after Adler's management "denied us access to certain information." KPMG's refusal to sign off on the accounts prompted the exit of Adler Co-Chief Executive Maximilian Rienecker and three other board members, the company said in a Saturday statement.
Adler's stock was down 40% at 4.33 euros on May 2 afternoon trading in Frankfurt, after trading below 3.9 euros in the morning.
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Shorts chart of the week
So far this year (as of May 6, 2022), one China-based company has been publicly subjected to an activist short campaign. That is down from six in the same period last year.
Source: Insightia | Shorts
Quote Of The Week
“How can shareholders trust CEO John Hester and these crony directors, who have wasted $400 million of shareholder money in a desperate attempt to entrench themselves, to now conduct a ‘robust process’ which might ell displace Hester?” – Carl Icahn
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