Wolosky Quoted in The Deal on Breaking Down Dual-Share Companies
Olshan Partner Steve Wolosky was quoted by The Deal (subscription required) in an article about companies with dual class structures and how activist investors were historically unable to successfully target them. The article details how dual class companies are no longer impervious and the lure of such companies is often in the valuation disparity because of the structure, thereby attracting activist investors. It also cites title insurance company Stewart Information Services Corp., which has an A/B structure, as a recent example where Wolosky was advising activists Foundation Asset Management LLC and Engine Capital LP. The investors in 2014 got an agreement from the company to put two of their nominees on the board and to cut pretax costs. Wolosky restates that every dual class structure is not created equal and "Public shareholders might be in the minority, but they can still put nonbinding public pressure on the board." "It's part of the equation,” Wolosky says “They [the investors] take a look at a company to see what's the path to unlocking value."