Latest news with #activistInvestor
Bloomberg
3 days ago
- Business
- Bloomberg
Activist Investor Meidar Leads More Finance Veterans Quitting UK
One of Britain's most prominent activist investors has relocated to the US, becoming the latest finance professional to leave the country at a time when many of its richest residents are facing higher taxes. Liad Meidar, the managing partner of Gatemore Capital Management, has moved with his family to Colorado after 15 years living in the UK, according to people familiar with the matter.
Globe and Mail
5 days ago
- Business
- Globe and Mail
Salesforce (CRM) Strengthens AI Capabilities with $8 Billion Informatica Acquisition
Salesforce's (CRM) acquisition of Informatica for approximately $8 billion underscores the cloud-software giant's renewed appetite for strategic deals as it intensifies competition in the rapidly evolving artificial intelligence sector. The move, Salesforce's most significant transaction since its nearly $28 billion purchase of Slack in 2021, bolsters the company's capabilities in data management—a critical area as enterprises increasingly integrate generative AI tools into daily operations. The deal represents Salesforce's response to activist investor pressure and rising market demands to demonstrate growth and profitability through high-impact acquisitions. Last year, Salesforce briefly shelved negotiations with Informatica, but interest from private equity firms and other tech giants reignited talks in April. Securing Informatica enhances Salesforce's existing platforms and positions it firmly within the burgeoning enterprise data market, estimated at over $150 billion. Market Overview: Salesforce shares rise following announcement of strategic $8 billion Informatica acquisition. Informatica stock gains as deal terms offer 30% premium to recent share prices. Enterprise software market increasingly shaped by significant AI and data management investments. Key Points: Acquisition strengthens Salesforce's competitive edge in AI-driven data management. Transaction driven by activist investor pressure for improved profitability. Salesforce's largest acquisition since the Slack purchase reflects renewed M&A strategy. Looking Ahead: Integration of Informatica expected to significantly boost Salesforce's AI and data management offerings. Potential for accelerated profitability and increased market share in enterprise AI. Competitive responses from other tech giants expected, as industry-wide consolidation intensifies. Bull Case: The acquisition of Informatica for approximately $8 billion significantly enhances Salesforce's AI and data management capabilities, creating a comprehensive "agent-ready" data platform by combining Informatica's strengths in data integration, governance, quality, and Master Data Management (MDM) with Salesforce's Data Cloud, MuleSoft, and Tableau. This strategic move positions Salesforce more strongly in the burgeoning enterprise data market, estimated at over $150 billion, and is expected to enable the development of more powerful, responsible, and scalable autonomous AI agents. Analysts see the deal as a way for Salesforce to acquire a "gold mine of data" and Informatica's customer base, facilitating cross-selling opportunities and enhancing its AI strategy, especially as data is crucial in the AI revolution. Salesforce plans to rapidly integrate Informatica's technology, particularly for its Agentforce platform, aiming to unlock synergies quickly in key sectors like Public Sector, Life Sciences, Healthcare, and Financial Services. The deal comes after renewed talks and is seen as a response to market demands for growth and profitability, reflecting a decisive M&A strategy to bolster Salesforce's AI-driven growth. Initial market reaction was positive, with both Salesforce and Informatica shares rising on the announcement. Bear Case: The acquisition price of $25 per share for Informatica, while a premium to recent prices, is notably lower than the mid-$30s or near $40 per share figures discussed in previous, unsuccessful negotiations, potentially signaling a less robust valuation or market conditions. Integrating a large company like Informatica and its technology stack into Salesforce's ecosystem is a complex undertaking, with the deal not expected to close until early in Salesforce's fiscal year 2027, potentially delaying the realization of synergies. Salesforce's stock has underperformed in 2025, and CEO Marc Benioff's aggressive M&A strategy has faced activist investor pressure in the past; the success of this large acquisition will be critical. While the acquisition is aimed at turbocharging Salesforce's AI agent strategy, the company has so far failed to meet some lofty expectations in this area, and the integration needs to deliver tangible results quickly. Informatica's own revenue growth projections for 2025 are modest (around 3%), which may temper the immediate financial uplift for Salesforce. The success of the deal hinges on Salesforce's ability to effectively and swiftly integrate Informatica's capabilities to close competitive gaps, as rivals are also heavily investing in advanced data management solutions. With the acquisition, Salesforce CEO Marc Benioff emphasized the creation of an unparalleled, AI-driven data platform designed to meet increasingly sophisticated enterprise needs. Informatica's technology allows Salesforce greater oversight and integration of data flows, which is essential for refining generative AI tools like "Agentforce," its rapidly growing virtual representative platform. This strategic purchase highlights the broader industry trend of technology giants leveraging AI-focused acquisitions to consolidate their market positions. Analysts from Scotiabank noted the deal could help Salesforce close competitive gaps, as rivals have similarly integrated advanced data management solutions. As Salesforce moves to finalize the deal early next fiscal year, the transaction's long-term success will depend on its ability to swiftly and effectively integrate Informatica's capabilities.
Yahoo
23-05-2025
- Business
- Yahoo
Phillips 66 narrowly survives Elliott proxy fight
Activist investor Elliott Management has won two of the board seats it was seeking at energy giant Phillip 66, according to people familiar with the matter. Elliott, taking a boardroom fight to its first ever vote in the US, had argued that Phillips' 'integrated' model — it owns both midstream and refining assets — made it inefficient and distracted its executives. Phillips said Elliott's breakup plan, a common activist demand at conglomerates like Philips 66, was short-sighted, though it promised to cut costs. Shareholders split the ticket, electing two Elliott nominees, Sigmund Cornelius and Michael Heim, and two of the company's picks, Bob Pease and Nigel Hearne. (Pease was endorsed by Elliott when he joined the board in 2024, but lost the fund's support after he backed giving CEO Mark Lashier the dual role as board chair.) 'As one of Phillips 66's largest investors, Elliott will continue to actively engage with the Company while holding management and the Board accountable,' Elliott said in a statement. Influential investor advisors ISS and Glass Lewis had recommended in favor of, respectively, all four and three of Elliott's nominees, support that the hedge fund was unable to convert into a clean sweep. Elliott secured its two board seats without support from Phillips' largest passive shareholders, Vanguard, State Street and Blackrock, according to another person familiar with the matter. No activist investor has won a seat at an S&P 500 election without support from at least one of those investors, according to Insightia data. 'This vote reflects a belief in our integrated strategy and a recognition that our early results do not yet reflect the full potential of our plan or the value inherent in this business. As a board, we are focused on creating meaningful long-term value for our shareholders,' CEO Lashier said in a statement. Still, Phillips 66 is a rare large company to lose multiple board seats in a contested election. Typically boards, which hire advisors to sound out investors and keep informal whip counts heading into a meeting, agree to negotiated terms rather than see more their preferred directors rejected by shareholders. Elliott has been particularly successful over the years at forcing finish-line settlements, including at Southwest Airlines last year. Wednesday's vote may not be the end of Elliott's pressure campaign at Phillips 66. The activist has honed a reputation for multi-year campaigns — this was its second run at Phillips 66, having pushed for and received board changes in 2023 — and some fellow activists expect it to return for a third next year, depending on how quickly the company considers and pursues changes. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Bloomberg
21-05-2025
- Business
- Bloomberg
Activist Investor Who Won Pitney Bowes Proxy Battle Is About to Be CEO
The head of Hestia Capital Management is poised to become chief executive officer of Pitney Bowes Inc., about two years after the activist investor won board seats at the shipping services provider. Hestia Founding Member Kurt Wolf is expected to be named CEO of the Stamford, Connecticut-based company as soon as Wednesday, replacing Lance Rosenzweig, according to people familiar with the matter, who asked to not be identified because it isn't public yet. Wolf won a seat on the Pitney Bowes board in 2023 along with three other Hestia nominees.
South China Morning Post
18-05-2025
- Business
- South China Morning Post
Let's dispel any doubts now over Hong Kong's post-2047 future
Hong Kong could be in for another bout of 'what will happen to us in …', only with 2047 replacing 1997. I say this after attending a farewell presentation by activist investor David Webb last week. Advertisement For many years , Webb has worked on a pro bono basis to improve public knowledge of business issues. Towards the end of his fireside chat at the Foreign Correspondents' Club, Webb asked which legal system would apply in Hong Kong after 2047 and whether our law students should continue to study the existing system or start to become proficient in mainland law. He referred in particular to contract law and land leases. My immediate reaction was: let's please not go through all this again. Half a century ago, I was an alarmist. Now I urge everyone to keep calm. When I first arrived in Hong Kong in the early 1970s, almost nobody expressed concern about 1997. Received wisdom then was that the date was irrelevant as Beijing had expressly disowned all the unequal treaties signed with foreign powers in the 19th century. China was ignoring the deadline, so it was safe for Hongkongers to do the same. I was never really convinced by that argument, for two reasons. The first concerned the relevant treaties. Britain was sticking to the terms of the two which gave it control over Hong Kong Island and urban Kowloon in perpetuity. It followed that, for consistency's sake, it had to abide by the terms of the 1898 lease of the New Territories . The British would have to offer it up when the 99-year lease expired. Advertisement The second reason concerned borrowing for property purchases. Hong Kong was moving towards 20-year mortgages, which simply did not work for properties north of Boundary Street (which used to mark the border between the colony of Hong Kong and the New Territories). Bank managers are by nature cautious, and I couldn't see them making big loans to buy on land where ultimate control would shortly be in question. I urged anyone who would listen to address the issue, but there were few takers.
