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With the fast and furious pace of activism this year, Axios’s activism status tracker is keeping tabs on whether campaigns are active or have been resolved. At the top of the list is the ongoing proxy contest between Norfolk Southern and Ancora to be settled at the May 9th annual meeting. In response to Ancora’s 193-page “fight” deck last week, Norfolk claimed that Ancora provided misleading operational data and overstated its cost-savings projections in its own detailed presentation. Norfolk’s rebuttal wasn’t enough to sway the Teamsters union, which voiced its support for Ancora on Thursday. Last week, the American Federation of Labor and Congress of Industrial Organizations (AFL-CIO) endorsed Norfolk Southern.
In Washington, it was a busy week for FTC Chair Lina Khan as the agency sued to block Tapestry’s planned $8.5 billion acquisition of Capri Holdings, the parent company of Versace and Michael Kors, alleging the combination would harm “affordable luxury” shoppers in an industry generally thought to have intense competition. In Reuters Breakingviews, Jonathan Guilford suggested that while the commission’s argument “is far from guaranteed to succeed,” the case could have “far-reaching implications” for future antitrust law.
The FTC also voted to ban most non-compete contracts nationally. A new Fried Frank report suggests that regulators will face significant legal challenges to enforcing the rule and the firm is recommending employers not rush to make changes until pending litigation is settled.
Finally, if you’re looking for some meaty weekend reading, Wachtell is out with a comprehensive read-out on the state of M&A, tender offers and more.
Have a great weekend,
GPP Team
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