Business Inquirer Quotes Andrew Freedman on the Rise of American Activist Investors in Europe
Partner and Co-Chair of Olshan's Activist & Equity Investment Group Andrew Freedman was quoted in a recent Business Inquirer article on the rise of American activist shareholders in Europe. "The US market remains crowded and generally overvalued, [so] activist investors will continue to focus their sights on foreign jurisdictions, including not only Europe, but Australia and Asia as well," Mr. Freedman explained. Due in part to the fact that many European countries lack the deterrent measures to protect against activism, some view Europe as an ideal location for launching activist campaigns: "The type of corporate self-reflection occurring in the US is happening to a much lesser degree in Europe, leaving more opportunities at European companies for activist investors to catalyze value creation." More lenient laws than those generally found in the U.S., coupled with the political stabilization resulting from Brexit negotiations, makes Europe attractive to wise investors, as Mr. Freedman observes, "Activist investors do not invest in a company to immediately go hostile or start a proxy contest. Their hope is for a real, behind-the-scenes dialogue with receptive management and to only escalate the situation publicly if the company is unwilling to engage or consider recommended change."