Bloomberg Deals: Shareholder Activism Trends

Olshan Shareholder Activism partner Rebecca Van Derlaske recently appeared on weekly financial news show Bloomberg Deals to discuss the current shareholder activism landscape, including market volatility, the rise in settlements and the importance of meaningful engagement between boards and shareholders. Addressing the impact of market volatility, Rebecca explained that while volatility can create attractive opportunities for activists to build positions, it does not necessarily make a company an activism target. “We haven’t seen any sort of dip or stymie of activism as a result of volatility,” she said. “If anything, it could be contributing to the rise of settlements we’ve been seeing lately.” Rebecca also discussed why many activist campaigns are resolved before reaching a shareholder vote. “No stockholder really approaches a board wanting for this to go to a proxy fight,” she noted, pointing to the time, expense and public nature of contested elections. Where private engagement and a settlement can achieve the change an investor is seeking, she explained, shareholders are often motivated to pursue that path instead. For boards, Rebecca emphasized that early and meaningful engagement can be critical. “Meaningful engagement can go a long way,” she said. “If boards come to those meetings with an open mind and not set in their ways, there is a lot that could be done behind the scenes before it ever needs to become public.”