Freedman Quoted on Buybacks and Spinoffs as Successful Activist Strategies
Law360 (subscription required) published an article emphasizing how activist funds are pursuing new strategies, in particular share-repurchase plans and company division spinoffs, due to current favorable market conditions. Olshan Partner Andrew Freedman explains buybacks as a productive activist approach: "When an activist looks at a company, [given] the fact that right now the credit markets are where they are, that opens up other avenues and opportunities for a company to unlock value or return capital to shareholders." In turn, a large scale buyout could benefit the targeted company as Freedman states "Companies are taking a long, hard look at their ability to lever up and do a sizable buyback program as a compromise or fallback position."
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