By Leah McGrath Goodman
Barry Rosenstein, co-founder of JANA Partners, did not own any
stock in the McGraw-Hill Companies at the end of last year. By
the end of the first quarter, he'd quietly scooped up more than
three million shares. By late June, he was buying at a rate of
more than 40,000 shares a day, amassing nearly eight million in
total. He persisted throughout July, even as McGraw-Hill's
stock leaped above $43, snapping up another 1.2 million shares.
Heading into the last quarter of the year, he secured more than
10 million shares of McGraw-Hill, bearing a price tag of well
above $400 million.
||Illustration by Greg
Then the news came. McGraw-Hill, in the second week of
September, announced it would split in two, creating a market
data company and an education and textbook publishing business.
It also committed to buying...