Monday, February 3, 2014

M&A Catalyst: Shareholder Activists

The linked article from the American banker on banking shareholder Activists highlights some important M&A points. First activists provide an important function in keeping banks on their toes. Activist activity has become the 21st century version of the hostile takeover. Activists are raising important questions over valuation and who is the best owner and manager of a bank’s assets-especially in a rapidly evolving industry. Second activists are drawn to firms with weak governance. Everything an activist is suggesting could be done by existing management if prodded by the board. M&A and its mirror image, divestment, will likely result from activist activity.


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