As we approach the Fourth of July and celebrate the first activists of our nation targeting an out-of-touch leadership, we turn our gaze to activity overseas. According to Diligent’s newly released annual Corporate Governance in Europe report, the continent has seen a resurgence of activist engagements this year, particularly in the U.K. and Germany, with increased calls for M&A breakups and spin-offs. The report also points out a recent spike in short seller campaigns, with many European companies seen as “ripe for the taking” thanks to favorable regulatory environments for activists. 

Across the Pacific, activists are big in Japan. In an effort to drive greater shareholder returns and stronger governance practices, both the Tokyo Stock Exchange and the Japanese government have increasingly pushed to embrace and integrate activists into the country’s business ecosystem. Firms like Elliott, Palliser Capital and Strategic Capital have jumped on the opportunity, building large new stakes and pushing for operational changes at some of Japan’s biggest companies.

Back home in The First State, deal makers closely watched the passage of Delaware Senate Bill 313. The Deal’s Ron Orol reports that the legislation, which would effectively reverse the Moelis decision, is headed to Governor John Carney’s desk to be signed into law. For a glimpse of the behind-the-scenes drama, check out The Delaware Call’s recent coverage of the tussle among state legislators in the lead-up to this point. 

Closer to home in the Big Apple, on July 4 we’ll be watching of course Nathan's Famous hot-dog eating contest—with or without Joey Chestnut—and look forward to celebrating our great country and our amazing city with the Macy’s Fourth of July Fireworks over the East River. When reading the Declaration of Independence on the 4th if you have that tradition, be sure to read as a complement Frederick Douglass’ “Fourth of July Speech” as well.

We will be off next week celebrating and cooking for the holiday. Have a great weekend and wishing our readers time off with family and friends,

Enjoy the 4th,

GPP team 

The Wall Street Journal: Activist Investor Jana Partners to Push Cybersecurity Firm Rapid7 to Sell Itself

Lauren Thomas reports that Jana Partners, in partnership with the investment firm Cannae Holdings, has taken an unspecified, large stake in Rapid7 and is pushing for operational changes. Read More

CNBC: Activist Starboard Value Demands Autodesk Explain Accounting, Financial Issues

After it was unable to delay Autodesk’s annual meeting, Starboard sent a letter to the company’s board on Tuesday calling for further explanation for the recent accounting mishap at the software company, writes Rohan Goswami. Read More

Axios: Elliott's Southwest Attack Options Include Early Shareholder Vote

Mike Flaherty writes that while Southwest’s next annual meeting is set for May 2025, the company’s bylaws allow for large shareholders to call a Special Meeting, which activist Elliott Management could use in its attempt to remove Southwest directors and CEO. Read More

M&A

Financial Times: US Drives Rebound in Global M&A Deals

Maria Heeter and Ivan Levingston note that high-value deals are on the rise again, led mostly by American “megamergers” as deals larger than $10 billion are up 70% compared to last year. However, the M&A market has not yet fully recovered from the COVID-19 pandemic, with the overall number of deals falling 25%. Read More

Financial Times: European Banking’s Biggest Takeover Battle Enters Uncharted Territory

Ortenca Aliaj chronicles BBVA’s ongoing attempt to acquire fellow Spanish banking rival Banco Sabadell. In the face of extreme opposition from the Spanish government, a full merger is looking less and less likely. Instead, BBVA’s executive chair, Carlos Torres, has expressed interest in completing an untraditional “non-merger” takeover. Read More

Bloomberg: Sonoco Buys Packaging Firm Eviosys From KPS for $3.9 Billion

Ortenca Aliaj chronicles Special situations fund KPS will offload the maker of sustainable food packaging Eviosys to U.S.-based Sonoco, the company responsible for the packaging of Pringles. Sonoco claims the Eviosys deal will generate roughly $100 million in synergies from the combination of similar businesses. Read More

ESG

Columbia Blue Sky Blog: Is DEI Valuable to Investors?

Professor Hoa Briscoe-Tran (University of Alberta School of Business) shares new research revealing that investors view well-implemented DEI initiatives as a potential competitive advantage and value-generating opportunity. Read More

Bloomberg: Not Joining ESG Reporting Standard to Incur Cost Soon, ISSB Chairman Says 

Emmanuel Faber, Chairman of the International Sustainability Standards Board, suggests that companies who do not adhere to international sustainability disclosure policies could soon face potential fines. Watch Here

FROM OUR DESK TO YOURS



GPPers have been eagerly awaiting the release of season three of the hit show The Bear this week. No other chef was more outspoken about the lifestyle lived in the kitchen than Anthony Bourdain, who would have turned 68 on June 25th. Hugo McCafferty of Fine Dining Lovers penned a touching tribute on ‘Bourdain Day’ about the journeyman’s influence on the FX sensation titled ‘The Bear wouldn’t exist if not for Bourdain.’

Readers of a certain age—high school or college in the mid 80s—will know the infamous Talking Heads Stop Making Sense tour and movie. In honor of the 40th anniversary of this iconic album and Jonathan Demme film, a bunch of musicians including Lorde, Miley Cyrus, Paramore and more put together a tribute album: Everyone’s Getting Involved, A Tribute to Talking Heads, with each song covered by a different musician. Listen to it: it’s cool, will bring back memories and is great when on your Peloton!

PEOPLE MOVES

• After 17 years as The Wall Street Journal's Deals editor, Dana Cimilluca will join Centerview. Read More
• Hess Corp. CEO John Hess will join the board of Goldman Sachs as an independent director. Read More
• Johannes Huth, longtime KKR partner and EMEA chairman, will retire after over 25 years with the PE giant. Read More
• Bob McCormick was named Executive Director of the Council of Institutional Investors. Read More

• July 10: The Buzz with Berkeley Center for Law and Business: Corporate DEI in the time of Polarization, Webinar

• Local NYC Events:
• June 28 – August 10: Paramount+ Movie Nights in Bryant Park
• June 28 – August 17: Celebrate Brooklyn Concert Series in Prospect Park
• June 29: Queens Night Market