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...