Glenview Capital Management has joined a small group of
activists calling for Dow Chemical and DuPont to make changes
to their merger deal. The Larry Robbins-led hedge fund, which
rarely engages in activism, has met with top people at both
chemical giants urging them to change their plan to break the
newly merged company into three parts, according to the
Wall Street Journal, citing a letter sent from Glenview to
its investors. Glenview also reportedly expressed
disappointment that Dow delayed the retirement of chief
executive officer Andrew Liveris. Dow and DuPont agreed to
merge in December 2015 in a deal valued at about $60 billion.
It is expected to close in August.
We earlier reported that Dan Loeb’s
Third Point has called on the two companies to create six
companies after the deal is completed, claiming this would
create an additional $20 billion in value. "Dow and DuPont have
one chance to fully optimize shareholder value from the
merger," Third Point said in its presentation. Back in 2015,
Nelson Peltz’s Trian Fund Management lost its
proxy fight with DuPont. At the end of the first quarter, Trian
was the eleventh largest shareholder of DuPont. Dow was the
second largest U.S. long of Third Point, which in turn was the
chemical giant’s eighth largest shareholder. At
the time, Dow was Glenview’s fourth largest U.S.
long. According to the Wall Street Journal, Glenview told
investors in its letter that it now owns $1 billion worth of
Dow stock. That was roughly the value of Third
Corvex Management’s Keith Meister is turning
up the pressure on Energen Corp., the oil and gas producer it
had called on to put itself up for sale earlier in the month.
In a new letter dated June 27, the activist hedge fund manager
said he was "very disappointed" that the company announced on
June 19 it will "continue with a status quo business plan."
Meister noted the stock’s subsequent decline and
said he was "troubled by the failure of the process by which
the Board came to its decision." In the latest letter, Meister
calls on the company to hold a road show with shareholders,
independent of management, to get their views on the
company’s future direction. "I encourage the board
to embrace this opportunity to course correct and obtain the
views of its shareholders in connection with deciding on the
future direction of the company," Meister said. If the board
fails to take such actions, he warned that he would "be
resolute in pushing for a meaningful path for all stakeholders
to have a direct voice in the plans for the
Dyal Capital Partners has taken a passive, non-voting stake
in Atalaya Capital Management, a credit and special
opportunities alternative investment manager with more than
$2.5 billion in assets under management. Dyal, a division of
Neuberger Berman Group established in 2011, has 24 minority
partnerships with hedge funds and private equity funds. "This
capital allows us to continue developing our business for the
future and invest more in our funds, fostering greater
alignment with our investors," says Ivan Zinn, founder and
managing partner of Atalaya, in a press release.
Valeant Pharmaceuticals International surged another 3
percent to close at $17.15.