Wolosky Quoted in The Deal on the Rise of Small Stake Activism
Olshan Activist Partner Steve Wolosky was quoted by The Deal (subscription required) in an article discussing the advantages and disadvantages of small stake activism. The story explains the recent rise and that 34.5% of the 148 public activist campaigns so far were from a shareholder with less than a 5% shareholder stake. Steve notes the advantage of not taking the full 5% stake in a company is the ability to work behind the scenes. On the other hand, Steve says, if one of the items on the investor's agenda is board representation, management may ask whether they shouldn't be talking to a larger shareholder. Which means it's incumbent upon the small stake investor "to understand the rest of the shareholder base," he said. Steve concludes that the best campaigns happen when the fund is in for the long term. The article also provides insight from Olshan client Glenn Welling, founder of Engaged Capital LLC, providing a sampling of key settlements and proxy fights.