Wolosky Quoted in The Deal on Activists Teaming up with PE Firms
The Deal (subscription required) published an article extensively quoting Olshan Activist & Equity Investment Practice Chair Steve Wolosky on the unsuccessful joint activist M&A takeover bid for Allergan Inc. by Valeant Pharmaceuticals and activist investor Bill Ackman of Pershing Square Capital, where Valeant lost out to a cash and stock offer from Actavis plc. Wolosky notes the idea of activists teaming up with strategic operating businesses in their activist campaigns has been around, even though not employed frequently. Wolosky points out two such examples that include Olshan’s clients: Starboard Value LP’s predecessor Ramius LLC partnering with Royalty Pharma in its successful bid to acquire Cypress Bioscience Inc. and Corvex Management LLP partnering with Related Fund Management LLC successfully installing a slate of directors at Commonwealth REIT. He states that the concept of activist fund managers teaming up with operational businesses or private equity firms is a structure that makes more sense and will emerge in the months and years to come. “We are talking with a number of activists who are thinking of teaming up with PE firms in situations so I expect that to be a more common practice in the not too distant future,” says Wolosky.